AUD range bound again despite elevated commodity prices

Daily Currency Update

AUD - Australian DollarThe Australian dollar maintained a narrow handle through much of Monday amid what was a largely lacklustre session across currency markets. Despite an uptick across key commodity prices with both copper and iron ore bouncing back toward record highs following last week's retracement, the AUD struggled to mount any real positive momentum. A risk-off backdrop remains intact and continues to offset the benefits of higher commodity prices while forcing the currency toward support at 0.7730. Having broken out beyond April’s narrow trading band earlier this month, the push and pull of short-term headwinds and long-term optimism appear to have dragged the AUD back toward said ranges as investors again search for a catalyst to drive direction and conviction. Our attentions today turn to the RBA policy meeting minutes. We expect few surprises given the meeting itself toed the line or expectation, however any guide on economic performance and expanded stimulus could prompt price action. We anticipate the AUD will remain range-bound between 0.768 and 0.78 through much of the week ahead.