OzForex Research
OzForex Foreign Exchange
AUD - Australian Dollar
The Aussie dollar consolidated gains below the 0.74 handle overnight, albeit in a relatively thin market as the United States heads into Thanksgiving. Opening this morning at 0.7362, the Aussie dollar traded within a thin band on Thursday, oscillating between 0.7354 and 0.7374 but never quite finding the impetus to push through this range, despite the US dollar falling against a basket of currencies. Moving into another quiet day on the economic calendar, the Aussie dollar will again trade on global risk sentiment.
The Aussie dollar has continued to enjoy this period of positive risk-on sentiment as the combination of vaccine news, the beginning of the Biden transition and Janet Yellen’s new appointment spurred risk activity globally. Adding further momentum to the Aussie was signs that Iron ore prices will have a good year in 2021, with the price inching slightly higher as well. Turning to equities, the Dow traded above 30,000 points and the S&P500 closed at a fresh all-time high, which encouraged the ASX to close up 0.59% and hit a 9-month high earlier in the week. Overall, the news has been bullish of late, which has helped the Aussie immensely to a 3-month high.
Moving into the close of the week, the Aussie has very little to digest to drive direction with momentum to come again from off-shore news flow.
Key Movers
The Great British pound softened overnight, falling 0.2% against the US dollar to open this morning at 1.3350 after Brexit again took center stage. The latest news out of the UK was that a deal was unlikely before the weekend with next week a more realistic expectation. The frustrations at the torturous negotiations played its part on FX markets with the sterling feeling the pinch, albeit only marginally in the grand scheme of things.
The US dollar also saw a softening, although again it was fairly muted. USD/CHF and USD/JPY both fell approximately 0.2% with the USD/CHF in particular, falling to a multi week low at 0.9060. Overall, within the current thin market environment the movements were modest.
Expected Ranges
AUD/CAD: 0.9531 - 0.9646 ▲
AUD/EUR: 0.6141 - 0.6223 ▲
GBP/AUD: 1.8033 - 1.8234 ▼
AUD/NZD: 1.0456 - 1.0561 ▼
AUD/USD: 0.7317 - 0.7411 ▲
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)
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.