Aussie dollar continues to trade above US$0.67
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Daily Currency Update
The Australian dollar is slightly weaker this morning when valued against the Greenback currently trading at US$0.6746 at the time of writing. The AUD/USD pair extends its losing streak for the fourth trading day on Tuesday. The pair declined to near US$0.6720 as the Australian Dollar weakened after releasing the Reserve Bank of Australia (RBA) minutes. The Reserve Bank has warned it could be forced to increase interest rates in the coming months while admitting at the same time an earlier-than-expected cut could be on the cards if the economy weakens more than expected. The minutes revealed that Governor Michele Bullock and her board discussed the scenarios that would lead them to another increase – a 14th since early 2022 that would take rates to their highest level since mid-2011. On the flipside, the RBA acknowledged that an early rate cut could come if the economy continues to weaken, households save most of their tax cuts, or if unemployment rises more than expected.Key Movers
The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, remains flat on Tuesday. The US dollar has turned sideways after revisiting a seven-week high as investors await fresh cues about the Federal Reserve’s (Fed) possible monetary policy action in the remainder of the year. The S&P 500 rebounded on Tuesday following a losing session on Wall Street with oil prices and bond yields in focus as investors assessed ongoing tensions in the Middle East. The S&P 500 gained 0.9% and the Nasdaq Composite rose 1.4%. The Dow Jones Industrial average added 130 points, or 0.3%. The market rallied slightly to end last week after a blockbuster jobs report, and the Dow notched a new all-time closing high.A stock market rally in China has fizzled out as a highly-anticipated announcement on plans to boost the country's ailing economy disappointed investors. Shares had jumped by over 10% as trading restarted after the Golden Week holiday but fell back after a news conference by the country's economic planners. After a volatile day of trading, the Shanghai Composite Index in mainland China closed 4.6% higher, while the Hang Seng in Hong Kong slumped by 9.4%. Investors had been hoping for more information about how the government plans to support economic growth but the announcement gave little in the way of details.
Expected Ranges
- AUD/USD: 0.6650 - 0.6850 ▼
- AUD/EUR: 0.6050 - 0.6250 ▼
- GBP/AUD: 1.9300 - 1.9500 ▲
- AUD/NZD: 1.0900 - 1.1100 ▲
- AUD/CAD: 0.9100 - 0.9300 ▼