Aussie dollar holds steady around 67 US cents

Daily Currency Update

The Australian dollar is steady this morning when valued against the Greenback. The AUD/USD pair seesawed around the 0.6700 mark on Monday as a short-term moving average defends the Australia Dollar buyers. At the time of writing the AUD/USD pair is currently trading at 0.6696. It was announced yesterday that Penny Wong will on Wednesday become the first Australian minister to visit China since the then-trade minister Simon Birmingham visited in November 2019.

High-level lines of communication reopened between the government and the People's Republic of China after Labor's federal election win in May. Despite the easing of strict COVID-19 curbs in China, a sharp rise in new infections could delay the full reopening of the economy. It’s worth noting that the People’s Bank of China's (PBOC) defence of easy money policy also keeps the Australia Dollar firmer, due to the strong trade links between Australia and China.

Looking ahead today we will see the release of the Reserve Bank of Australia (RBA) Monetary Policy Meeting Minutes a detailed record of the RBA Reserve Bank Board's most recent meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates. On Wednesday the Melbourne Institute will release the monthly Leading Index which is designed to predict the direction of the economy. Finally, on Friday the Australian Treasury Department will release the Mid-Year Economic and Fiscal Outlook which compares the government's fiscal performance to the strategy outlined in the prior Annual Budget.