Home Daily Commentaries Aussie dollar continues to trade at US$0.67 

Aussie dollar continues to trade at US$0.67 

Brett Ottawa
Written by
Brett Ottawa

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market.

| Tuesday 15 October, 2024

Daily Currency Update

The Australian dollar is slightly weaker this morning when valued against the Greenback, currently trading at US$0.6722 at the time of writing. AUD/USD pair declined after the release of weak China trade data on Monday. China Exports in September declined to 2.4% YoY from 8.4% previously and below the 6% expected, according to data from the National Bureau of Statistics of China. This contributed to a lower-than-expected and lower-than-previous Trade Balance for the month of $81.71 billion. The data added to the overall pessimistic view of the Chinese economy and investor disappointment at the lack of detail contained in a recently unveiled fiscal stimulus program.

There are no scheduled releases today. Looking ahead this week and on Wednesday the 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. Hunter is responsible for advising Reserve Bank Board members who decide where to set the nation's key interest rate settings and on matters relating to economics. Hunter's public engagements often include 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, 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

The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six currencies, edged up 0.38% to 103.30, its highest level since early August 2024. Gold price retraces after hitting a daily high of $2,666 on Monday as China’s stimulus failed to relieve the financial markets and the Greenback extended its advance.

The XAU/USD trades at $2,650, down some 0.26% at the time of writing. The S&P 500 was up 0.8% in afternoon trading, building on its record set on Friday. The Dow Jones Industrial Average came back from an early loss to rise 225 points and add 0.5% to its record, as of 2:35 p.m. ET, while the Nasdaq composite was up 1%. The U.S. bond market remained closed for the day because of the Monday holiday.

Looking ahead this week, US Retail Sales data on Thursday is projected to show continued consumer spending strength supported by favourable economic conditions. Business inventories and industrial production reports on Thursday will provide insight into overall economic activity.

Expected Ranges

  • AUD/USD: 0.6600 - 0.6800 ▼
  • AUD/EUR: 0.6050 - 0.6250 ▼
  • GBP/AUD: 1.9300 - 1.9400 ▲
  • AUD/NZD: 1.0950 - 1.1050 ▲
  • AUD/CAD: 0.9200 - 0.9400 ▼

Written by

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market. He started his foreign exchange career with OFX more than a decade ago, as a private dealer catering to individual clients. He later transitioned to the corporate sector, assuming the position of Corporate Senior Relationship Manager. What truly excites Brett is the opportunity to engage with people, supporting their business growth and sharing in their successes.

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