AUD improves on the back of RBA announcement

OzForex Research OzForex Foreign Exchange

AUD - Australian Dollar

The Australian dollar saw a nice gain during Tuesday’s trading session on the back of the RBA cash rate announcement yesterday. Hitting a one week high of 0.6861 against the USD, the RBA statement was not as dovish as traders were expecting, with the Bank suggesting they are looking to be patient of its 75bps of easing before adding any further stimulus.

The Australian Bureau of Statistics will release their quarterly GDP data just before midday today. Expected to have a major impact on the AUD, it shows the change in the inflation-adjusted value of all goods and services produced in the economy.

The AUD opened at 0.6845 this morning against the USD.

Key Movers

The USD has weakened against most other currencies on the back of recent talks regarding the US-China trade deal. President Trump imposed import tariffs of 2.3bn worth of French goods in retaliation for the tax imposed by Paris on the sales of digital services providers, commenting that “I’m not going to let anyone take advantage of American companies. If anyone is going to take advantage of American companies, it’s going to be us”.

Overnight we saw the US Manufacturing PMI data come back less than expected at 48.1 against a forecasted 49.2. Showing the level of diffusion index based on surveyed purchasing managers in the manufacturing industry, the negative data implies industry contraction.

Over in Canada we can expect to see some movement with the rate statement and overnight rate announcements being released after midnight tonight. With the interest rate expected to stay at 1.75%, this is usually already priced into the market but tends to be overshadowed by the rate statement which is focused on the future and discusses the economic conditions that influenced their decision.

Expected Ranges

AUD/CAD: 0.9055 - 0.9175 ▲

AUD/EUR: 0.6105 - 0.6260 ▲

GBP/AUD: 1.8830 - 1.9235 ▲

AUD/NZD: 1.0430 - 1.0590 ▼

AUD/USD: 0.6755 - 0.6945 ▲

Author

OzForex Research

OzForex Foreign Exchange

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