AUD - Australian Dollar

Risk sentiment improved overnight, and unlike previous sessions which only saw equity markets rise, commodity prices and risk currencies were also buoyed. The strong start to the US earnings session overnight is seen as the catalyst for the improvement in risk sentiment, with the majority of companies beating market expectations so far.

With yesterday’s softer than expected retail sales numbers, AUD/USD initially touched an eight-month low of 0.7290 before improving to trade around 0.7360. Similarly, the NZD touched 0.6894 before recovering to 0.6977 forcing the AUD/NZD cross lower from 1.0580 to 1.0545.

The economic calendar remains light today with the only major event being the ECB meeting tonight. We are not anticipating any changes to policy setting but a robust discussion on inflation targeting is to be expected. AUD/USD traders will be looking to see if the current reversal in risk can carry the pair to 0.7400 today. On the downside, support can still be seen at 0.7300 and 0.7290.

Key Movers

Given the reversal in risk overnight, it was unsurprising to see safe-haven currencies sell-off and commodity-linked currencies benefit. With oil prices rising about 4% overnight, the Canadian dollar, which is highly correlated with oil prices due to the Canadian economy’s reliance on oil exports, was able to rise 1.2% against the USD. USD/CAD fell from 1.2700 to 1.2526 throughout trade.

Safe-haven currencies felt the brunt of the selloff as the USD index was down 0.2%, USD/JPY rose above 110 again and the EUR shook off four-month lows of 1.1750.

Expected Ranges

AUD/USD: 0.7290 - 0.7400 ▲

AUD/EUR: 0.6190 - 0.6260 ▲

GBP/AUD: 1.8560– 1.8690 ▲

AUD/NZD: 1.0500 - 1.0600 ▼

AUD/CAD: 0.9150 - 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

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD hovers around 1.1900, retains weekly gains

The EUR/USD pair trades around the 1.19 mark after the Eurozone Q2 Prelim GDP beat estimates with 2% while US PCE inflation rose by less than anticipated in June, printing at 3.5% YoY. Risk-on mood persists.


GBP/USD retreats after flirting with 1.4000

GBP/USD retreated from near the 1.4000 level, but the greenback remains away from investors' radar. Optimism over the Brexit issue and the declining trend in new COVID-19 cases in the UK offers support to the pound.


XAU/USD slides to $1,820 area, downside seems limited

Gold traded with a mild negative bias around the $1,825 region, or daily lows, during the early North American session, albeit lacked any follow-through selling.

Gold News

Shiba gets listed on eToro as demand for SHIB skyrockets

Leading investment platform eToro has been adding cryptocurrency assets on popular demand from users. The Dogecoin killer recently amassed 600,000 holders despite range-bound price action. 

Read more

NIO shares rise again as Wall Street shrugs off recent China woes

NYSE:NIO added 1.86% as EV and China stocks bounced back again. Nio rides higher as industry leader Tesla gets some major upgrades. Nio rival XPeng releases a refreshed look for its compact SUV.

Read more