Aussie dollar weaker ahead of RBA Meeting’s Minutes

OzForex Research OzForex Foreign Exchange

AUD - Australian Dollar

The Australian dollar is weaker this morning when valued against the Greenback. The Australian dollar came under selling pressure for most of the day, reaching a daily low of 0.6751, before closing the day at 0.6770. On the release front yesterday we saw Chinese trade balance widened to $39.65 billion in September, much better than the $33.30B expected. The larger surplus, however, is the result of contracting imports, which in the mentioned period plummeted by 8.5%, while exports declined by 3.2%. Looking ahead today and the Reserve Bank of Australia will release the Minutes of its latest meeting, and the market anticipates a dovish stance, which may lead to additional downside movement in the AUD.

From a technical perspective, the AUD/USD pair is currently trading at 0.6775. We continue to expect support to hold on moves approaching 0.6730 while now any upward push will likely meet resistance around 0.6800.

Key Movers

The Greenback rose on Monday, recovering some ground against most major rivals, as optimism waned about a trade deal between the United States and China, and investors fretted about the ongoing Britain’s exit from the European Union. Regarding US-China trade tensions, both countries seem to have reached another truce and be heading into a deal, although negotiations are set to continue after this “phase one” announced by US President Donald Trump.

The Pound sterling is weaker this morning when valued against the Greenback finishing the day at around 1.2560, having fallen to a daily low of 1.2515. Brexit-related headlines kept weighing on sterling reports suggesting that EU representatives fear that British Prime Minister Boris Johnson won’t be able to pass Brexit in Parliament (October, 31). On the data front today in the UK we will see the release of its latest employment data. The ILO Unemployment Rate is seen stable at 3.8%, while the September Claimant Count Change is expected at 27.9K vs the previous 28.2K. From a technical perspective, the GBP/USD pair is currently trading at 1.2568. We continue to expect support to hold on moves approaching 1.2515 while now any upward push will likely meet resistance around 1.2600.

Expected Ranges

AUD/USD: 0.6675 - 0.6775 ▼

GBP/AUD: 1.8450 - 1.8650 ▼

AUD/NZD: 1.0650 - 1.0850 ▲

AUD/EUR: 0.6050 - 0.6250 ▼

AUD/CAD: 0.8850 - 0.9050 ▲

Author

OzForex Research

OzForex Foreign Exchange

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