OzForex Research
OzForex Foreign Exchange
Daily currency update
The Australian dollar extended its run toward US$0.68 through trade on Thursday, buoyed by a sustained improvement in risk appetite and a broadly weaker US dollar. With little of note on the domestic macroeconomic ticket the AUD tracked between US$0.6730 and US$0.6760 through much of the local session, testing resistance on moves above US$0.6750 before extending toward intraday highs just shy of US$0.6780 overnight. With US markets closed for Thanksgiving trading conditions remained thin, offering little support to a USD already under pressure. The FOMC meeting minutes afforded little new insight into future Fed policy, but were seen to have adopted a dovish undertone adding further support to the AUD and heaping more pressure on the USD. Having failed to extend beyond resistance at US$0.6780 the AUD has tracked lower into this morning’s open buying US$0.6765 at time of writing. We anticipate the AUD will continue to track between US$0.65 and US$0.68 as market position themselves for next weeks all important US non-farm payroll print.
Key movers
The US dollar retreated through trade on Thursday, struggling under the weight of the week’s risk-on narrative and a further decline across US rates. With US markets closed for Thanksgiving trading volume was thin and US treasuries continue to point downward adding to the 14 basis point fall seen through Monday, Tuesday and Wednesday. With the US under pressure the euro pushed back above €1.04, while the GBP extended its upturn marking a new 3-month high at £1.2150 before edging lower into this morning’s open. Against a backdrop of lower rates the JPY enjoyed sustained support as the USD consolidated a break below ¥140, marking session lows below ¥138.25. With little of note on today’s ticket our attentions remain with the risk narrative for direction into the weekly close. Having come under sustained pressure through the last 2-3 weeks we anticipate a period of consolidation ahead of key risk events through early December.
Expected ranges
- AUD/USD: 0.6600 – 0.6820 ▲
- AUD/EUR: 0.6420 – 0.6520 ▲
- GBP/AUD: 1.7720 – 1.8020 ▲
- AUD/NZD: 1.0750 – 1.0850 ▲
- AUD/CAD: 0.8980 – 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)
Recommended Content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.