Daily Currency Update

The Australian dollar drifted below 0.72 US cents on Tuesday, continuing to correct lower amid rising uncertainty surrounding the economic impacts of this latest COVID wave and Omicron strain. Consumer confidence marked its largest monthly decline in three decades, tumbling through the first few weeks of January as Australians adjust their spending habits in the face of skyrocketing COVID-19 infections. Restrictions may have been lifted, yet the pandemic continues to preclude consumers from re-engaging in normal economic activity. Confidence fell some 7.6% to start the year as rising Covid cases, extensive testing delays and supply chain stress all weigh on economic function. Having touched intraday highs at 0.7230 the AUD fell below 0.72 in the latter stages of the domestic session marking overnight lows at 0.7170.  Despite last week’s foray above 0.73 US cents and uptick in global rates and increased risk aversion have again forced investors to give up AUD gains. We expect the AUD will continue to maintain a narrow trading band, bouncing between 0.70 and 0.7330 through the coming weeks.

Key Movers

The US dollar advanced through trade on Tuesday amid a backdrop of higher global rates and a sustained risk off run. The DXY dollar index advanced 0.5% on the day, pushing back toward 96 as the USD advanced against the majority of major counterparts. The correlation between higher Fed interest rate expectations and a broader risk off narrative appears to be returning, adding support to the USD and driving the EUR and GBP lower overnight. Having touched highs above 1.14, the EUR fell sharply, giving up three quarters of a percent and marking intraday lows at 1.1320, while the GBP slipped back below 1.36. The JPY was the day’s big winner, staving off further deprecation against the USD and a push toward 115 as the up tick in risk aversion helped push investors toward haven assets. Our attentions today turn to UK and Canadian CPI data.

Expected Ranges

  • AUD/USD: 0.7070 – 0.7250 ▼
  • AUD/EUR: 0.6290 – 0.6370 ▲
  • GBP/AUD: 1.8850 – 1.9020 ▼
  • AUD/NZD: 1.0580 – 1.0650 ▲
  • AUD/CAD: 0.8950 – 0.9050 ▼

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 Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.

EUR/USD News

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 

GBP/USD News

Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures