Aussie dollar rallies above 69 US cents

Daily Currency Update

The Australian dollar is slightly stronger this morning when valued against the Greenback. Overnight the AUDUSD pair managed to stage a recovery after dropping to a new YTD low at US$0.6811, which consequently cracked the 50, 100, and 200-day Exponential Moving Averages (EMAs). However, the AUDUSD pair reclaimed the 0.6900 figure and is trading at 0.6919, above its opening price by 0.53%.

Key drivers for the Aussie dollar some optimism over a potential recovery in China and support to Copper prices benefited the resources-linked Australian dollar. In addition, a subdued US dollar price action turns is a key factor acting as a tailwind for the AUDUSD pair. The fundamental backdrop still seems tilted in favour of bearish traders and warrants caution before positioning for any meaningful upside.

Looking ahead today and it's quite a busy schedule. We will see the release of the Purchasing Managers' Index (PMI) a survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. We will also see the release of the Reserve Bank of Australia (RBA) Monetary Policy Meeting minutes. A detailed record of the RBA board's most recent meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates.

Looking ahead for the rest of the week and tomorrow the Australian Bureau of Statistics will release the quarterly Wage Price Index which is a leading indicator of consumer inflation, when businesses pay more for labour, the higher costs are usually passed on to the consumer.