OzForex Research
OzForex Foreign Exchange
AUD - Australian Dollar
The Australian dollar extended last weeks upturn, breaking above 0.7750 to mark new highs at 0.7780. The US dollar remains under pressure as a correction in treasury yields and renewed demand for risk help drive gains across commodity currencies and the Euro. With little of note on the macroeconomic ticket and no central bank commentary to steer direction the pace of appreciation slowed through Monday with investors reluctant to extend outside recent ranges. Volatility across currency markets remains low as a lack of conviction plagues analyst and traders. COVID-19 continues to wreak havoc across developing countries, with Brazil and India both struggling to contain resurgent outbreaks. The global economic outlook remains clouded as the timeline to recovery is unclear forcing investors to the sidelines in lieu of a definitive update/shift in the recovery.
Key Movers
The US dollar fell through trade on Monday, marking a sixth consecutive daily depreciation and 2 % correction through the last month. While the broader economic outlook remains clouded an amendment across US treasury yields and definitive shift in optimism surrounding Europe’s vaccine program has prompted renewed demand for risk assets. Despite a correction overnight equities remain near record highs, dragging commodity currencies higher across the board.
The Euro pushed above 1.20, while the Japanese Yen marked a 6-week high and the GBP outperformed all counterparts, extending beyond 1.39 and 1.3950, closing in on 1.40.
With little of note on today’s macroeconomic ticket we expect volatility across currency markets will remain narrow. Recent US dollar weakness is expected to continue, albeit the pace of correction should moderate through the week ahead.
Expected Ranges
AUD/USD: 0.7630 - 0.7820 ▲
AUD/EUR: 0.6390 - 0.6520 ▼
GBP/AUD: 1.7780 - 1.8120 ▲
AUD/NZD: 1.0770 - 1.0830 ▼
AUD/CAD: 0.9650 - 0.9780 ▲
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
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.