AUD creeps higher as risk narrative keeps USD on the backfoot

Daily Currency Update

The Australian dollar extended its run toward US$0.68 through trade on Thursday, buoyed by a sustained improvement in risk appetite and a broadly weaker US dollar. With little of note on the domestic macroeconomic ticket the AUD tracked between US$0.6730 and US$0.6760 through much of the local session, testing resistance on moves above US$0.6750 before extending toward intraday highs just shy of US$0.6780 overnight. With US markets closed for Thanksgiving trading conditions remained thin, offering little support to a USD already under pressure. The FOMC meeting minutes afforded little new insight into future Fed policy, but were seen to have adopted a dovish undertone adding further support to the AUD and heaping more pressure on the USD. Having failed to extend beyond resistance at US$0.6780 the AUD has tracked lower into this morning’s open buying US$0.6765 at time of writing. We anticipate the AUD will continue to track between US$0.65 and US$0.68 as market position themselves for next weeks all important US non-farm payroll print.