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

Latest Forex Analysis

Editors’ Picks

Bears ignore Aussie holidays, cheer coronavirus news at fresh multi-week low near 0.6815

AUD/USD drops to 0.6814, with an intra-day low of 0.6811, during the early Monday morning in Asia. The fears of China’s coronavirus outbreak are dominating the market’s risk sentiment off-late.

AUD/USD News

USD/JPY: Coronavirus bearish gap breaks below 109

USD/JPY has dropped heavily in the open, breaking below the 109 handle to print a fresh low of 108.88 as traders prepare for a risk-off week when considering the implications of the Coronavirus. 

USD/JPY News

Are you anxious about Coronavirus? Well, so are the markets

There's so much we don't know about Coronavirus, which increases the level of concern from public health officials, you & I as well as the markets and we can expect a risk-off start to the week ahead of a pretty major schedule.

Read more

Gold rebounds above $1560

The XAU/USD pair dropped to a daily low of $1556.70 during the European trading hours as the easing worries over coronavirus becoming a global epidemic and a broad-based USD strength put the pair under bearish pressure.

Gold News

GBP ends week on a weak note despite upbeat PMI data

The GBP/USD pair spiked to its highest level since January 7th at 1.3174 on Friday with the initial reaction to the upbeat PMI data from the UK. The pair could remain choppy ahead of BoE’s policy decision. 

GBP/USD News

Forex Majors

Cryptocurrencies

Signatures