The Australian Dollar (AUD) has held up well this week against the US Dollar (USD) as risk sentiment globally improved. Prices early Friday is milling around the 0.7100 area with further upside bias predicted over the day. Prelim US GDP came in slightly worse than predictions at -1.5% vs -1.3% for the first quarter as stronger consumer spending failed to offset weak business and private sector spending. There were no surprises from the Federal Reserve overnight when they read the May meeting minutes with participants agreeing that a 50-point hike to the interest rate was appropriate at their next June and July meetings. We have seen a slight pullback in precious metals weighing on the Aussie but was nullified by pending US home sales m/m which printed -3.9% after -1.9% was excepted for April. US holiday Monday should give us a slow start to the week.
The current interbank midrate is: AUDUSD 0.7101
The interbank range this week has been: AUDUSD 0.7034- 0.7123