AUD - Australian Dollar

The Australian dollar remained range bound on Wednesday as it continues to take a breather from its decline at the start of August. Opening at 0.6780, we are literally sitting at the same mark this morning despite some positive movement in the offshore session to reach a weekly high of 0.6799.

We saw a slight rise in the local currency following the release of MI Leading index figures which measures nine economic indicators and looks to predict the direction of the economy. The index trended positively from -0.09% in June to 0.05% in July which is the first trending release higher since November last year. Tax cuts and an improving house market looks to have been the main catalyst for the higher reading.

The majority of price action occurred during the North American session as FOMC minutes were released. Minutes continued its dovish sentiment with a spike in the AUD/USD initially to test the 68 US cent handle before gains were erased.

Flash Manufacturing and Services PMI is scheduled for release this morning. From a technical perspective, the AUD/USD pair is currently trading at 0.6780. We continue to expect support to hold on moves approaching 0.6740 while now any upward push will likely meet resistance around 0.6840.

Key Movers

All eyes were on the release of the latest FOMC minutes overnight as equity markets rose again on the chance that investors are betting again on further stimulus from the United States Central Bank. The FOMC minutes showed the need for flexibility as several members would have preferred 50 basis points of cuts in July. Markets are currently hinging on the next move by the Federal Reserve bank as the CME Fedwatch tool currently shows all but a guaranteed cut at the next meeting in September. Markets currently pricing a 98% change of a 25bps move downwards to a range of 1.75-2.00%.

Tomorrow sees the first day of meetings at the annual Jackson Hole Symposium where leaders gather from around the world to discuss economy policy. Declining global growth is sure to be a key talking point over the coming days with central banks globally continuing to provide stimulus measures in the hopes of boosting countries around the world from slumping into recession.

Expected Ranges

AUD/USD: 0.6740 - 0.6840 ▲

GBP/AUD: 1.7700 - 1.8200 ▼

AUD/NZD: 1.0550 - 1.0650 ▲

AUD/EUR: 0.6080 - 0.6150 ▲

AUD/CAD: 0.8980 - 0.9050 ▼

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

EUR/USD eases toward 1.1050 amid fears of US-EU trade war, mid-East flare up

EUR/USD has kicked off the week with a slide toward 1.1050, close to its closing levels on Friday. Fears of US tariffs against the EU and the fallout from the attack on Saudi oil installations weighs.


GBP/USD drops to around 1.2450 ahead of Johnson-Juncker meeting

GBP/USD is trading closer to 1.2450, lower. UK PM Johnson will meet EC Commission President Juncker to discuss Brexit amid reports of progress. Tensions in the Middle-East and uncertainty ahead of the Fed impact markets.


USD/JPY looking to close the bearish opening gap amid risk-off

USD/JPY gapped down to 107.44 on Monday’s open as risk appetite is diminished following the attack on Saudi Arabian oil facilities. The spot now trades near 107.80, aiming to close the bearish opening gap ahead of a big week. 


Forex Today: Oil prices skyrocket after attack on Saudi installation, Chinese economy slows, Brexit talks continue

Here is what you need to know on Monday, September 16: A drone attack on a Saudi oil facility knocked down around 50% of the Kingdom's output and 5% of global production.

Read more

Gold prices shot higher by over 1% in risk-off start to the week

Gold prices have shot higher in the open this week due to the increased tensions in the Middle East following the attack on Saudi Arabia’s oil and gas facilities in Abqaiq which has suspended half of the kingdom’s processing.

Gold News

Forex Majors