AUD - Australian Dollar

Upbeat sentiment on Thursday saw the Australian dollar rise from 0.7380 to 0.7412. With expectations that the US federal reserve may be slower to tighten monetary policy settings in the US and US economic data surprising to the downside, the USD was broadly lower. This also allowed the New Zealand dollar to rise from 0.6970 to 0.7020 throughout trade, pushing the AUD/NZD cross rate lower to 1.0546.

We saw US Q2 GDP come in at an annualised 6.5% quarter on quarter growth, well below consensus estimates of 8.5%. Also out of the US, jobless claims came in close to expectations and pending home sales fell 1.9% in June, with prices at record highs.

The day ahead features Australian private credit data and Q2 PPI. We will have NZ consumer confidence data from ANZ, before we turn to Q2 GDP and CPI out of Europe. There’s also a raft of releases due from the US, with the June core PCE deflator the headline risk event. Traders will be looking for AUD/USD to consolidate above 0.7400 before any further upside moves are considered.

Key Movers

The US dollar continues to come under selling pressure since yesterday's FOMC meeting. With the market seemingly coming to the conclusion that the Federal Reserve won’t be announcing any tapering in bond purchases until at least later this year. The USD index is now trading at a one month low and is 0.4% lower as positive risk sentiment and a fall in US real yields weigh further on the worlds reserve currency.

Expected Ranges

AUD/USD: 0.7300 - 0.7450 ▲

AUD/EUR: 0.6180 - 0.6250 ▼

GBP/AUD: 1.8730– 1.9000 ▲

AUD/NZD: 1.0500- 1.0600 ▼

AUD/CAD: 0.9100 - 0.9280 ▼

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

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD remains pressured after US data misses estimates

EUR/USD is trading closer to 1.1750, paring its recovery from earlier in the day as the safe-haven dollar is bid. US Consumer Sentiment missed estimates with 72 points in September. The financial woes of China's Evergrande are weighing on sentiment.

EUR/USD News

GBP/USD trades under 1.38 amid on UK data, dollar strength

GBP/USD is on the back foot, trading under 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

XAU/USD surrenders intraday gains, drops closer to $1,750 level

Gold struggled to preserve its intraday gains and dropped to the lower end of the daily trading range during the early North American session. 

Gold News

Experts say Ripple will win SEC lawsuit, which might propel XRP to new all-time highs

The latest development in the ongoing SEC vs. Ripple lawsuit is that documents are classified as privileged and blocked for public viewing. Though institutional investors are yet to take big bets on the altcoin in 2021, retail investors are actively trading in XRP.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Majors

Cryptocurrencies

Signatures