Daily Currency Update

Following weak jobs data from Australia that caused a drop below 0.6900, the AUD/USD eked out a little gain through the middle of North American trading on Friday. On Friday, things changed slightly since the AUD/USD made some gains while the USD matched its earlier advances. Indicators of a drop-off in existing home sales in the US by 1.5% are providing a glimpse into the difficulties buyers are facing as a result of high-interest rates and limited supply. On that note, Federal Reserve President Patrick Harker entertained the possibility of an interest rate downshift at the next release, mentioning that 25 basis point hikes will be sufficient moving forward. However, other Federal Reserve presidents do not share this, with KansaCiti Federal Reserve President stating that they must be patient and await inflation effects in the services sector. Overall, Friday was a positive day for the Australian dollar with the AUD/USD exchange rate closing out the day at 0.69670, posting an overall gain of 0.83%.

Key Movers

Improved risk sentiment helped lift commodity currencies through trade on Friday following a stronger than anticipated string of earnings data from Key US corporates. Earnings across the Tech sector helped fuel a rebound in equities while commentary from Fed speakers helped affirm expectations policymakers will slow the pace of rate hikes next week. The Fed is expected to issue a 25 point increase, pulling back from the 50 point hike issued in December as data sets suggest a slowdown in activity and shift toward economic recession. With the AUD, NZD, and CAD leading gains into the weekly close the Euro and GBP looked to consolidate gains with the Euro closing above 1.0850 while Sterling looks poised to test a break above 1.24. In other news the Japanese yen was the day’s worst performer, offering some support to the dollar index as it gave up 129 and allowed the USD to climb back above129.50 leading into the weekly close/ CPI data surged upward, marking 4% y/y, a fresh 40 year high. While the BoJ insists inflation is transitory there is mounting pressure to move away from expansionary policy and give up yield curve controls. With little of note on today’s macroeconomic ticket, our focus this week shifts to US advanced GDP data and the PCE index, as key measures of performance and inflation ahead of next week’s Fed policy update.

Expected Ranges

  • AUD/USD: 0.6905 – 0.6970 ▲
  • AUD/EUR: 1.5698 – 1.5569 ▲
  • GBP/AUD: 1.7770 – 1.7930 ▼
  • AUD/NZD: 1.0750 – 1.0800 ▼
  • AUD/CAD: 0.9295 – 0.9350 ▲

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


Recommended Content

Editors’ Picks

AUD/USD defends 0.6400 after Chinese data dump

AUD/USD defends 0.6400 after Chinese data dump

AUD/USD has found fresh buyers near 0.6400, hanging near YTD lows after strong China's Q1 GDP data. However, the further upside appears elusive amid weak Chinese activity data and sustained US Dollar demand. Focus shifts to US data, Fedspeak. 

AUD/USD News

USD/JPY stands tall near multi-decade high near 154.50

USD/JPY stands tall near multi-decade high near 154.50

USD/JPY keeps its range near multi-decade highs of 154.45 in the Asian session on Tuesday. The hawkish Fed expectations overshadow the BoJ's uncertain rate outlook and underpin the US Dollar at the Japanese Yen's expense. The pair stands resilient to the Japanese verbal intervention. 

USD/JPY News

Gold: Buyers take a breather below $2,400 amid easing geopolitical tensions

Gold: Buyers take a breather below $2,400 amid easing geopolitical tensions

Gold price is catching a breath below $2,400 in Asian trading on Tuesday, having risen over 1% in the US last session even on a solid US Retail Sales report, which powered the US Dollar through the roof. Easing Middle East geopolitical tensions and strong Chinese data could cap Gold's upside. 

Gold News

SOL primed for a breakout as it completes a rounding bottom pattern

SOL primed for a breakout as it completes a rounding bottom pattern

Solana price has conformed to the broader market crash, following in the steps of Bitcoin price that remains in the red below the $65,000 threshold. For SOL, however, the sensational altcoin could have a big move in store.

Read more

Israel-Iran military conflict views and takeaways

Israel-Iran military conflict views and takeaways

Iran's retaliatory strike on Israel is an escalation of Middle East tensions, but not necessarily a pre-cursor to broader regional conflict. Events over the past few weeks in the Middle East, more specifically this past weekend, reinforce that the global geopolitical landscape remains tense.

Read more

Majors

Cryptocurrencies

Signatures