AUD/USD higher on broad USD weakness
|AUD - Australian Dollar
The Australian dollar once again made a run towards 0.7400 overnight, buoyed by a broad-based sell off in the USD, which was down 0.3%. NZD/USD rose from 0.7330 to 0.7390 throughout trade however once again faltered on approach to the key 0.7400 handle. Heading into today’s session, the Australian dollar is currently buying 0.7380 US dollars, 0.6250 Euro’s and 0.5338 Sterling.
It was a similarly positive story for the New Zealand Dollar overnight, rising from 0.6950 and breaking through 0.7000. This saw the AUD/NZD cross come under pressure, falling to its lowest level since December at 1.0540.
Looking ahead to today’s session, we’re set to hear from RBA deputy governor Guy Debelle, who will be speaking about the FX global code. The speech is not expected to be market moving and traders will be looking past it to Chinese industrial profits data for June which are expected to show higher prices in raw materials and therefore higher input costs for manufacturers. A continuation of the positive momentum could see the Australian Dollar test the key 0.7400 handle through trade today whilst on the downside, resistance can be seen around the 0.7330-0.7340 level.
Key Movers
The main market mover overnight was the broad-based weakness in the world’s reserve currency. With the USD index off 0.3%, EUR/USD was able to rise to 1.1817, GBP/USD was up above 1.3800, USD/JPY was rangebound and risk currencies such as the Australian and New Zealand Dollars rose.
In other markets, the S&P500 rose 0.2% to fresh record highs (again) and movements in commodity markets were limited with crude oil futures rising 0.9%, Iron ore up 0.1% and gold 0.3% softer.
Expected Ranges
AUD/USD: 0.7330 - 0.7450 ▲
AUD/EUR: 0.6220 - 0.6330 ▲
GBP/AUD: 1.8600– 1.8800 ▲
AUD/NZD: 1.0500- 1.0600 ▼
AUD/CAD: 0.9210 - 0.9300 ▲
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