AUD - Australian Dollar

The Australian dollar creeped upward through trade on Thursday pushing back through 0.6750 as demand for risk improved on the back of upbeat US-China trade discussions. The vibe is positive according to key trade officials as talks progress and optimism surrounding at least a partial trade deal and medium-term tariff détente increases. The AUD followed the Yuan higher touching intraday highs at 0.6775 before stops and profit taking forced a marginal correction and we open this morning buying 0.6762 US cents.

The question now is can we sustain this risk on move and what can we expect from day 2 of trade talks. While the initial signs promote ongoing optimism a break down in negotiations will force the AUD back toward 0.6680 while the upside gains enjoyed should a mini/partial deal be agreed are limited to key resistance handles. Since slipping below 0.68 in mid-September the AUD has struggled to break back above 0.6775/80 while previous supports at 0.68 and 0.6830 now pose tricky barriers of resistance. With little of on the domestic docket attentions and focus will remain squarely affixed to trade negotiations as the primary driver governing direction into the weekly close.

Key Movers

Safe havens wore the brunt of yesterdays risk on moves with the CHF and JPY both suffering losses against major currency counterparts. The USD touched one-week highs against the Yen on Thursday as hopes for a partial trade deal between the US-China drove an upturn in risk appetite. While currency markets were perhaps less sensitive than equity markets there is plenty of scope for volatility leading into next weeks open as trade talks progress through Friday.

Sterling recouped losses suffered through trade on Wednesday erasing the dip suffered after the Northern Irish Party emphatically opposed concessions on the Irish backstop. Prime Minister Johnson and Irish Premier Varadkar issued a joint statement suggesting a pathway to a deal was possible. The turn around in optimism helped the pound surge back through 1.24 and 1.2450 to touch 1.2470.

Expected Ranges

AUD/USD: 0.6680 - 0.6830 ▲

AUD/EUR: 0.6080 - 0.6180 ▲

GBP/AUD: 1.8050 - 1.8530 ▲

AUD/NZD: 1.0650 - 1.0750 ▲

AUD/CAD: 0.8950 - 0.9030 ▲

IMPORTANT: This information has been prepared for distribution over the internet and without taking into account the investment objectives, financial situation and particular needs of any particular person. Oz Forex Foreign Exchange makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites. Please read our Product Disclosure Statement and our Financial Services Guide.

Regulated in Australia by ASIC (AFS Licence number 226 484)
© 2010 Copyright Oz Forex Foreign Exchange Pty Ltd ABN 65 092-375-703
OzForex Foreign Exchange Services

Member of FOS (Financial Ombudsman Service)
Full Member of AFMA (Australian Financial Markets Association)

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD consolidating as markets digest the new US-Sino trade truce

EUR/UDS is trading around 1.1030, little changed. Markets are digesting the US-Sino handshake deal that prevents new US tariffs that were planned for Tuesday. Euro-zone industrial output is due out.


GBP/USD slips below 1.26 as Brexit talks drag

GBP/USD has kicked off the new week with a drop below 1.26 as Brexit optimism fades. Intense weekend talks have failed to result in an accord. Negotiations continue ahead of the EU Summit. 


USD/JPY retreats from 2-1/2 month tops, still comfortable above 108.00 handle

A partial US-China trade deal on Friday weighed on the JPY’s safe-haven status. Traders now seemed inclined to book profit despite a pickup in the USD demand.


Forex Today: Markets skeptical about US-Sino trade truce and sterling suffers a hangover as talks continue

Markets are cautious regarding the US-Sino partial trade deal. The world's largest economy agreed on a "hand-shake" agreement which is yet to be written. It includes a Chinese commitment to buy agrifoods.

Read more

Gold climbs to session tops, inching closer to $1500 mark

Gold edged higher through the early European session and is currently placed at the top end of its daily trading range, around the $1495 region.

Gold News

Forex Majors