AUD - Australian Dollar

The Australian Dollars depreciation continued through trade on Friday as US and China trade talks deteriorate. Unsteady labour market data Thursday and waning optimism a compromise on trade may have been reached before June both weighed on the AUD forcing the dollar below 0.69 to touch intraday and year to date lows at 0.6860. The uptick in unemployment rates Thursday compounded recent softness across wage prices and inflation data and have amplified calls for the RBA to act and loosen monetary policy in a bid to stimulate lacklustre domestic economic performance.

Heightened US-China trade tension and growing concerns the global economy is failing to fire have weighed further on the domestic unit. As the US and China engage in a tit for tat tariff increase and the US look set on expanding it’s tariff agenda, albeit a decision on auto tariffs has been suspended for 6 months, the outlook for the AUD appears less than rosy.

Despite an uplift on open following the weekend election results the sustained period of range bound trade with supports above 0.70 appear to have broken and risks to the downside remain in play. Attentions now turn to the RBA policy meeting minutes Tuesday and ongoing trade talks for direction through the week ahead.

Key Movers

The U.S. Dollar outperformed key rivals through trade on Friday advancing against both the Euro and Pound. Concerns over European Parliamentary elections and Britain’s exit from the European union weighed on both currencies as investors looked to haven assets. While the Euro found some support in a commitment from President Trump to waylay the imposition of auto tariffs on Germany and Japan the combined unit failed to make any significant headway and opens this morning only marginally above 1.1150, while the GBP lodged its worst week for 2019 as Brexit talks broke down.

The GBP plunged to a four-month low as talks between Theresa May and Labour Leader Jeremy Corbyn broke down. May’s failure to advance a deal at home has dampened investors demand for the Pound and forced a move outside recently narrow ranges as markets begin to price in the likelihood of an exit without a deal. Sterling opens this morning only marginally above 1.27 having touched lows at 2.2701.

Expected Ranges

AUD/USD: 0.6830 - 0.6970 ▼

AUD/EUR: 0.6080 - 0.6220 ▼

GBP/AUD: 1.8310 - 1.8610 ▼

AUD/NZD: 1.0480 - 1.0580 ▼

AUD/CAD: 0.9130 - 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

Editors’ Picks

EUR/USD drops to mid-1.13s on Bullard's hawkish remarks

St. Louis Fed President Bullard dismissed the idea of a 50 basis points rate cut in July and helped the greenback start recovering its losses. Meanwhile, FOMC Chairman Powell reiterated FOMC saw a stronger case for more accomodation.


GBP/USD eases further, holds above 1.2700

GBP/USD hit 1.2783 before changing direction, now closing to the 1.2700 figure. Broad dollar's weakness keeps the downside limited, despite subdued demand for Sterling.


USD/JPY slumps below 107 on dismal US data, risk aversion

The USD/JPY pair came under a renewed selling pressure in the American session and dropped below the 107 mark amid the ongoing broad USD weakness and the stronger demand for safe havens.


All that glitters is gold ahead of G-20 summit

Investors sought shelter in safe haven assets with gold prices surging above six-year high level and the yen strengthening due to ongoing geopolitical uncertainties, as well as investor caution ahead of today’s Fed Chairman speech and the Trump-Xi meeting on the sidelines of G-20 summit this Saturday.

Read more

Gold consolidates recent upsurge to multi-year tops, comfortable above $1400 mark

Gold adds to the post-FOMC upsurge amid escalating geopolitical tensions. A modest USD uptick/stability in equity markets prompts some profit-taking. The downside remains limited ahead of Powell’s speech later this Tuesday.

Gold News