Aussie dollar finds support at US$0.67
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Daily Currency Update
The Australian dollar is slightly stronger this morning when valued against the Greenback currently trading at 0.6725 at time of writing. The Australian dollar recovered some ground against the Greenback on Friday after a measure of prices paid by producers reaffirmed that inflation is coming down, warranting further easing by the Federal Reserve. Inflation expectations have decreased to a three-year low of 4% in October, providing a somewhat positive signal. However, the minutes from the Reserve Bank of Australia's (RBA) latest meeting revealed discussions around both potential rate cuts and hikes, reflecting ongoing uncertainty about the economic outlook. The RBA concluded that the current interest rate appropriately balances the risks associated with inflation and labour market conditions. Looking ahead this week and on Wednesday Reserve Bank of Australia (RBA) Assistant Governor (Economic) Sarah Hunter is due to speak at the Citi Australia and New Zealand Investment Conference, in Sydney. She's responsible for advising Reserve Bank Board members who decide where to set the nation's key interest rates settings and on matters relating to economics, and his public engagements are often used to drop subtle clues regarding future policy shifts. On Thursday all eyes will be on the Australian Bureau of Statistics when they release the latest Unemployment Rate decision. The jobless rate is expected to remain steady at 4.2%. Finally, on Friday we will see the release of the National Australia Bank (NAB) Quarterly Business Confidence survey which is a leading indicator of economic health - businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment.Key Movers
U.S. producer prices were unchanged in September as a small rise in the cost of services was offset by cheaper goods, pointing to a still-favorable inflation outlook and supporting views that the Federal Reserve would cut interest rates again next month. The unexpected flat reading reported by the Labor Department on Friday followed data on Thursday showing consumer prices increased slightly more than expected last month. But some components that go into the personal consumption expenditures (PCE) price indexes were a bit firmer, suggesting fairly warmer underlying inflation in September. The U.S. central bank tracks the PCE price indexes for its 2% inflation target. The unchanged reading in the producer price index for final demand last month followed an unrevised 0.2% gain in August, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast the PPI edging up 0.1%. Gold rallied over 1% on Friday, with the yellow metal set to end the week with modest gains of 0.20% after inflation data revealed on Friday and the Consumer Price Index (CPI) report on Thursday capped the Greenback’s advance. Global stocks rose on Friday, lifted by U.S. bank earnings, and on track for a weekly gain while U.S. Treasury yields were mostly lower after inflation and consumer confidence reports solidified expectations for the path of Federal Reserve rate cuts. The Dow Jones Industrial Average (.DJI) 409.74 points, or 0.97%, to 42,863.86, the S&P 500 (.SPX), 34.98 points, or 0.61%, to 5,815.03 and the Nasdaq Composite (.IXIC), 60.89 points, or 0.33%, to 18,342.94.Expected Ranges
- AUD/USD: 0.6650 - 0.6850 ▼
- AUD/EUR: 0.6050 - 0.6250 ▼
- GBP/AUD: 1.9200 - 1.9400 ▼
- AUD/NZD: 1.0900 - 1.1100 ▲
- AUD/CAD: 0.9150 - 0.9350 ▼