Aussie dollar continues to trade below 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 0.6688 at time of writing. On Friday the Australian dollar declined, while the US dollar weakened following comments from a "Fed whisperer" suggesting a higher probability of a 50-basis-point rate cut at the Federal Reserve's (Fed) next meeting. The AUD also found support from a hawkish tone in the latest RBA Minutes, which highlighted discussions among members about potentially raising the cash rate target. The minutes emphasized persistent inflationary pressures and market expectations of possible rate cuts in late 2024. The AUD also found support from a hawkish tone in the latest RBA Minutes, which highlighted discussions among members about potentially raising the cash rate target. The minutes emphasized persistent inflationary pressures and market expectations of possible rate cuts in late 2024. Looking ahead this week and on Thursday the Australian Bureau of Statistics will release the latest monthly Unemployment Rate figures which is expected to remain steady at 4.2%. Any job gains will probably discourage the Reserve Bank from cutting its key interest rate in the near term. There are no other scheduled releases this week.Key Movers
US stock indices closed higher on Friday on hopes of a bigger interest rate cut by the Federal Reserve next week. The Dow Jones Industrial Average rose 297.01 points, or 0.72 per cent, to 41,393.78, the S&P 500 gained 30.26 points, or 0.54 per cent, to 5,626.02 and the Nasdaq Composite gained 114.30 points, or 0.65 per cent, to 17,683.98. For the week, the S&P 500 rose 4.02 per cent and the Nasdaq climbed 5.95 per cent, and the Dow added 2.60 per cent. Looking ahead this week and the Federal Reserve is preparing to announce interest rate cuts as soon as Wednesday. The board is set to meet on Sept. 17 through 18. The move by the Fed could bring some signs of economic relief to people with mortgages, credit cards, and vehicle loans. The current Federal Reserve interest rate is at 5.25% to 5.50%, which has remained unchanged since the Federal Open Market Committee set the rate — a 23-year-high — in July 2023. Following the Fed monetary policy committee’s decision on interest rates, Chair Jerome Powell will hold the press conference to elaborate on policy outcome. The Fed has kept its main interest rate at a two-decade high in hopes of slowing the economy enough to stifle high inflation. On Thursday we will see the release on Philadelphia Fed manufacturing survey for September and existing home sales for August.Expected Ranges
- AUD/USD: 0.6600 - 0.6800 ▼
- AUD/EUR: 0.5950 - 0.6150 ▼
- GBP/AUD: 1.9400 - 1.9600 ▲
- AUD/NZD: 1.0750 - 1.0950 ▲
- AUD/CAD: 0.9000 - 0.9200 ▼