AUD/USD pushes through 0.6900 boundary

AUD - Australian Dollar

The Australian Dollar finally managed to push through the 0.6900 boundary during yesterday’s session against the USD, steadily climbing higher to open this morning at 0.6922.

Private sector growth remained weak in November slowing to its weakest annual growth rate in almost a decade, with housing price downturn the big contributor. Numbers from the RBA suggest it grew only 0.1% over the month, compared to market expectations of a 0.2% rise.

All quiet on the macroeconomic news front, with no major news expected to affect the AUD until after the first week of January with the Building Approvals data released on the 8th of January.

Key Movers

China has announced they will reduce tariffs on a range of over 850 products such as frozen pork to tech parts commencing from the 1st of January. The changes were in response to a slowing economy as Beijing looks to boost imports, and a truce with the US as President Trump advises they are close in a trade-deal with China.

Over in Canada, their GDP data came back less than expected at -0.1% compared to it’s forecasted rate of 0.1% indicating contraction in the economy. This is the first month-to-month decline since February and the latest warning sign that the Canadian economy has stalled.

We can expect a quiet holiday season with no major macroeconomic news being released until NYE with the US Chicago PMI. Showing the level of a diffusion index based on surveyed purchasing managers, it is a leading indicator of economic health.

Expected Ranges

AUD/CAD: 0.9020 - 0.9185 ▲

AUD/EUR: 0.6150 - 0.6305 ▲

GBP/AUD: 1.8450 - 1.905 ▼

AUD/NZD: 1.0350 - 1.0530 ▼

AUD/USD: 0.6850 - 0.7125 ▲