Home Daily Commentaries Aussie dollar trades below US$0.67 

Aussie dollar trades below US$0.67 

Daily Currency Update

The Australian dollar is slightly weaker this morning when valued against the Greenback currently trading at US$0.6698 at the time of writing. The Australian dollar (AUD) remains subdued against the US dollar (USD) on Tuesday, weighed down by weak trade balance data from China, Australia's largest trading partner. A decline in copper prices also contributed to the downward pressure on the Australian dollar, while iron ore prices remained mostly unchanged. On the local front yesterday ANZ-Roy Morgan Consumer Confidence was virtually unchanged at 83.4 this week. However, looking longer-term, Consumer Confidence has now spent a record 89 straight weeks below the mark of 85 and is now 7 points above the same week a year ago, October 9-15, 2023 (76.4), and 1.3 points above the 2024 weekly average of 82.1. Looking ahead today 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. 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

The US Dollar Index (DXY), which measures the value of the US dollar against its six other major peers, extended its winning streak for the sixth consecutive day on Tuesday. The DXY trades around 103.30 with 2-year and 10-year standing at 3.96% and 4.09%, respectively, at the time of writing. The New York Empire State Manufacturing Index for October was released, showing a significant decline into contraction at -11.9. This contrasts with the previous increase of 11.5 and falls well below expectations, which had anticipated a modest rise to 2.3. On Thursday, markets will follow Retail Sales figures, which might shake the USD dynamics and Fed bets. Gold prices advanced Tuesday as US Treasury bond yields retreated, capping US dollar gains. A light economic docket featured the New York Empire State Manufacturing Index and the release of the NY Fed Consumers Expectations Survey. The XAU/USD trades at $2,664.

Expected Ranges

  • AUD/USD: 0.6600 - 0.6800 ▼
  • AUD/EUR: 0.6050 - 0.6250 ▼
  • GBP/AUD: 1.9400 - 1.9600 ▲
  • AUD/NZD: 1.0900 - 1.1100 ▲
  • AUD/CAD: 0.9150 - 0.9350 ▼

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.