Daily Currency Update

The Australian dollar opens this morning at much the same point as yesterday, having failed to hold onto overnight gains and a brief foray above 0.73 US cents. The AUD tracked sideways through much of the local session bouncing between 0.7275 and 0.7290, before surging through 0.73 shortly after the domestic sessions close. Despite key data points supporting an aggressive path to US central bank policy normalisation, markets appear to be unwinding recent USD short positions. With much of the policy change already priced in and the roadmap of tighter financial conditions clearer, investors are looking for an out and opportunity to capitalise on recent upside. Having touched intraday highs at 0.7315, the AUD drifted back below 0.73 and now buys 0.7280 US cents. With little of note on the domestic ticket, our attentions turn to US Retail Sales data and a slate of second tier data points for direction into the weekly close.

Key Movers

The US dollar came under added downward pressure through trade on Thursday as investors continued to capitalise on recent gains, jumping on profit taking opportunities. With key risk events now behind us and little changed in the roadmap to monetary policy normalisation, markets have moved off the world’s base currency having priced in positive data points. The DXY dollar index fell through 95, marking intraday lows at 94.66 before edging marginally higher into the daily close. The euro has been a primary beneficiary of this weeks USD correction, pushing back above 1.1450 and closing in on resistance at 1.1480/1.15, while the Great British pound held onto gains above 1.37 and the yen pushed the dollar toward supports at 114. Attentions turn now to US retail sales and second tier macroeconomic data for direction into the weekend. A DXY close below yesterday’s low could signal a technical shift in momentum. We are keenly attuned to market action into the close.

Expected Ranges

  • AUD/USD: 0.7170 – 0.7330 ▲
  • AUD/EUR: 0.6320 – 0.6380 ▼
  • GBP/AUD: 1.8690 – 1.8920 ▼
  • AUD/NZD: 1.0580 – 1.06560 ▼
  • AUD/CAD: 0.9080 – 0.9130 ▲

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)

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD extends slide to 1.1300 as dollar gathers strength

EUR/USD continues to stretch lower and tests 1.1300 handle ahead of the American session. The greenback outperforms its major rivals as safe-haven flows dominate the financial markets. Investors await Markit's preliminary US Manufacturing and Services PMI data. 


GBP/USD tests 1.3500 on risk aversion, weak UK data

GBP/USD continues to edge lower and trades at its weakest level in more than two weeks near 1.3500. The data from the UK revealed that the private sector's business activity expanded at a softer pace in early January than it did in December.


Gold bulls likely to stay on the sidelines, focus remains on FOMC

Rising geopolitical tensions assisted the safe-haven gold to regain positive traction on Monday. The risk-on impulse, rebounding US bond yields, hawkish Fed expectations capped the upside.

Gold News

Crypto carnage continues to unfold

Bitcoin price has witnessed a massive crash over the past week, undoing the gains seen since July 25. Ethereum, Ripple and other altcoins have followed suit, experiencing an even worse crash. 

Read more

Nvidia extends losses after Bitcoin’s overnight flash crash

NVDA investors are getting used to seeing the colour red after a year in 2021 when all they saw was green. On Friday, shares of NVDA fell by 3.21%.

Read more