Aussie dollar continues to trade below 69 US cents
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Daily Currency Update
The Australian dollar is slightly weaker this morning when valued against the Greenback, currently trading at US$0.6879 at time of writing. The Australian dollar (AUD) registered minimal losses against the USD late into Wednesday’s North American session after hitting a daily high of US$0.6915. The Reserve Bank of Australia (RBA) has remained wary that inflation is too high, failing to provide hints of the beginning of its easing cycle. Earlier, the Australian Bureau of Statistics (ABS) revealed that Retail Sales on Tuesday were better than expected, justifying the RBA’s stance to hold rates higher. Today, we will see the release of the Goods Trade Balance. Export demand and currency demand are directly linked because foreigners must buy the domestic currency to pay for the nation's exports. Export demand also impacts production and prices at domestic manufacturers.Key Movers
AUDJPY retraces its recent losses registered in the previous day, trading around 99.40 during Wednesday’s European session. The Japanese yen (JPY) received downward pressure as the Bank of Japan’s (BoJ) Summary of Opinions from September’s Monetary Policy Meeting indicates no immediate plans for additional rate hikes. The BoJ intends to maintain its accommodating stance but remains open to adjustments if economic conditions show significant improvement. The USD recovered against the yen on Wednesday, rallying over 2% after Japanese Prime Minister Ishiba commented the economic environment is not ready for additional rate hikes. USDJPY has picked up traction again above 144.00, trading 0.50% higher at 144.27.In the US Private sector, employment rose 143,000 in September, and annual pay was up 4.7% year-over-year, according to Wednesday's Automatic Data Processing (ADP) report. The jobs report and pay insights use ADP's fine-grained anonymised and aggregated payroll data to provide a representative picture of the private-sector labour market. Market participants have placed the odds of the Fed cutting rates by 25 bps at 64%, while the chances for a more significant 50 bps cut have diminished to 36%, according to the CME Fed Watch Tool.
Expected Ranges
- AUD/USD: 0.6800 - 0.7000 ▼
- AUD/EUR: 0.6150 - 0.6350 ▼
- GBP/AUD: 1.9150 - 1.9350 ▲
- AUD/NZD: 1.0900 - 1.1100 ▲
- AUD/CAD: 0.9200 - 0.9400 ▼