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)

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD recovers above 1.0400, looks to post weekly gains

EUR/USD recovers above 1.0400, looks to post weekly gains

EUR/USD regained its traction after dropping toward 1.0350 in the early American session and climbed above 1.0400. Trading conditions remain thin on Black Friday and the pair remains on track to end the week in positive territory.

EUR/USD News

GBP/USD recovers toward 1.2100 as US Dollar loses strength

GBP/USD recovers toward 1.2100 as US Dollar loses strength

GBP/USD managed to stage a recovery toward 1.2100 in the American session on Friday and now looks to register gains for the third straight week. The US Dollar struggles to preserve its strength as markets remain subdued on Black Friday. 

GBPUSD News

Gold steadies near $1,750 as US yields retreat

Gold steadies near $1,750 as US yields retreat

Gold price continues to move sideways at around $1,750 heading into the weekend. The benchmark 10-year US Treasury bond yield retreated from the daily high it touched above 3.75% earlier in the day, allowing XAU/USD to erase a portion of its daily losses.

Gold News

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin price is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read more

FX next week and yield curve inversions

FX next week and yield curve inversions

Since the Fed's last raise November 3, Fed Funds rate opens and closes at 3.83. The Fed Funds rate once traded freely on its own with highs and lows as any financial instrument. In 2000, Central banks implemented meetings every 6 weeks.

Read more

Majors

Cryptocurrencies

Signatures