Aussie dollar rallies back towards US$0.67
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Daily Currency Update
The Australian dollar is stronger this morning when valued against the Greenback currently trading at US$0.6680 at the time of writing. The AUD/USD pair rebounds strongly from the key support of US$0.6650 in Tuesday’s European session. The Aussie pair discovers strong buying interest on expectations that the Reserve Bank of Australia (RBA) will continue with a restrictive monetary policy stance for the remainder of the year. Markets seem to be considering the possibility of no cuts by the RBA this year. Copper and iron ore prices rebounded as well, providing support to the Australian dollar. The RBA is on track to becoming the last central bank of the G10 countries to start cutting interest rates. There are no scheduled releases for today. Looking ahead this week and on Thursday we will see the release of the Purchasing Managers' Index (PMI). A survey of about 400 purchasing managers asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. The RBA will also release an Annual Report.Key Movers
The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, sees modest gains amidst profit-taking after a sustained rally. US equities are pulling back while Treasury yields and the USD continue to strengthen. Higher Treasury yields are attracting foreign capital inflows, providing further support to the US Dollar. Gold prices extended their gains for the fifth day out of the last six and reached an all-time high (ATH) at $2,748, just shy of the psychological $2,750 mark. Geopolitical tensions and expectations that the Federal Reserve (Fed) would continue to lower borrowing costs are tailwinds for the yellow metal. Therefore, XAU/USD trades at $2,744, gaining almost 1%. Looking ahead for the rest of the week and on Thursday, US Initial Jobless Claims for the week ending October 19 are foreseen rising from 241K to 242K. October’s S&P Global Manufacturing PMI is expected to improve from 47.3 to 47.5. The Services PMI for the same period is estimated to dip from 55.2 to 55. The S&P 500 was little changed. The Nasdaq 100 rose 0.1%. The Dow Jones Industrial Average was little changed. In late hours, Texas Instruments Inc. gave a lackluster revenue forecast for the fourth quarter. Starbucks Corp.’s guidance will be suspended for 2025.Expected Ranges
- AUD/USD: 0.6600 - 0.6800 ▲
- AUD/EUR: 0.6100 - 0.6300 ▲
- GBP/AUD: 1.9200 - 1.9400 ▼
- AUD/NZD: 1.0900 - 1.1100 ▲
- AUD/CAD: 0.9100 - 0.9300 ▼