AUD - Australian Dollar

The Australian dollar is stronger this morning when valued against the Greenback. The Aussie dollar rose to a multi-week high of 0.6908 overnight on the back of encouraging US-China trade-related headlines, suggesting that a deal is “very” close and that the US is willing to give up on tariffs, cutting the existent ones by half. The Australian dollar was given a boost earlier in the week after the U.S Federal Reserve has left the interest rate unchanged on Thursday night at 1.75% which was widely expected however the vast majority of FOMC participants believe rates will remain unchanged in 2020. On the release front yesterday in Australia December Consumer Inflation came in at 4.0%, better than the 3.5% expected, and matching its previous monthly reading.

Looking ahead today and there are no scheduled releases in Australia. All eyes will on US November Retail Sales, seen up by 0.5% in the month, white the Retail Sales Control Group is seen up by 0.3%. From a technical perspective, the AUD/USD pair is currently trading at 0.6905. We continue to expect support to hold on moves approaching 0.6865 while now any upward push will likely meet resistance around 0.6930.

Key Movers

The UK headed to the polls overnight to vote in the general election with the UK Prime Minister Boris Johnson hoping to secure a majority government with 326 constituencies. If a party has a majority, its leader will head to Buckingham Palace to ask the Queen's permission to form a new government. Polls close at 10am AEDT after which the first exit polls will emerge. Yesterday in the UK there were no scheduled macroeconomic releases and there’s nothing relevant scheduled for Friday either. All eyes will focus on the election’s outcome and what it will mean for Brexit. A victory from Prime Minister Boris Johnson would suggest the UK will finally leave the European Union by the end of January.

The GBP/USD pair hit a multi-month high of 1.3229 during Asian trading hours yesterday, helped by dollar’s weakness. From a technical perspective, the GBP/USD pair is currently trading at 1.3182. We continue to expect support to hold on moves approaching 1.3100 while now any upward push will likely meet resistance around 1.3240.

Expected Ranges

AUD/USD: 0.6800 - 0.7000 ▲

GBP/AUD: 1.8900 - 1.9100 ▼

AUD/NZD: 1.0350 - 1.0550 ▲

AUD/EUR: 0.6100 - 0.6300 ▲

AUD/CAD: 0.9000 - 0.9200 ▲

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)

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD trades at fresh September lows

Risk-aversion is the main theme this Monday, amid resurgent coronavirus cases in the Old Continent and the announcement of  new lockdowns. ECB’s Lagarde said the economic recovery in the EU is “very uncertain, uneven and incomplete.”


GBP/USD extends slump sub-1.2800

The Pound plunged on a dismal market mood, as PM Johnson acknowledged the kingdom is undergoing a second coronavirus wave. GBP/USD trades at one-week lows around 1.2800.


XAU/USD dives to sub-$1900 levels, six-week lows

Gold extended last week's rejection slide from a short-term descending trend-line resistance and tumbled to six-week lows during the early North American session.

Gold News

Bitcoin needs to defend critical support level at $10,600

Bitcoin was trading inside an ascending triangle pattern between September 3 and September 15, which is created when the price establishes higher lows and a horizontal trendline around the swing highs. 

Read more

WTI plummets to $39, down more than 4%

Crude oil prices closed the previous week sharply higher but erased a large portion of those gains on Monday. As of writing, the barrel of West Texas Intermediate was down 4.2%, the biggest daily percentage decline in nearly two weeks, at $39.15.

Oil News

Forex Majors