OzForex Research
OzForex Foreign Exchange
AUD - Australian Dollar
Tuesday’s offshore sessions saw a consolidation in global risk appetite as equity markets were lower and the safe haven USD was higher. This saw the Australian Dollar trade sideways, ranging between 0.6925 and 0.6878 throughout overnight trade. Given the escalating situation in Victoria, the AUD/NZD cross was forced lower, slipping from 1.0630 to 1.0609, opening up the door for a move below 1.06.
The news of 191 new COVID-19 cases in Victoria yesterday led to the announcement of a 6-week lockdown in metro Melbourne and a closure of the Victoria-NSW Border by the Victorian government. The local currency, which was approaching the key 0.7000 handle at Asian open, was sold off nearly 60 points on the news to trade closer to 0.6930. As expected, the RBA maintained their monetary policy stance yesterday, holding the cash rate at 0.25% and delivered nothing of impact to markets.
As we head into a very quiet day on the data release front, we’re expecting the local unit to continue to trade in line with global risk sentiment. Due to the unfolding situation in Victoria, risks are seemingly skewed to the downside with immediate support at 0.6930 looking vulnerable. On the topside, key resistance at 0.7000 is still a big obstacle.
Key Movers
Taking a global look at the overnight session which seemingly had it all, the USD index was 0.3% higher across the board as risk sentiment consolidated as US-China trade tensions simmered and the strength of the US economic recovery was questioned. News that US Secretary of State, Mike Pompeo was looking at banning Chinese social media app TikTok and concerned comments from Fed official Bostic about what the recent spike in COVID-19 cases meant for the economic recovery stifled risk sentiment globally.
The Euro under-performed, falling from 1.1310 to 1.1260 before recovering slightly. The GBP was the best performer on the day, rising 0.6% against the greenback to trade around 1.12560 ahead of this week's Brexit negotiations.
Expected Ranges
AUD/USD: 0.6900 - 0.7000 ▼
AUD/EUR: 0.6130 - 0.6180 ▲
GBP/AUD: 1.7890 - 1.8110 ▲
AUD/NZD: 1.0580 - 1.0640 ▼
AUD/CAD: 0.9390 - 0.9480 ▲
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)
Recommended Content
Editors’ Picks
AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.