Geopolitical risks and the hopes of a ceasefire between Russian and Ukraine forces have underpinned a rampant Australian Dollar (AUD) even though a seriously worsening situation could turn the tables and underpin the safe haven US Dollar (USD) capping further upside moves. The Aussie posting gains for the fifth straight week to 0.7340 Friday morning. Resistance on the chart at 0.7300 clearly held little effect. Fed chairman Powell supports a 0.25% rise to interest rates later this month. The Fed also expected to start shrinking its 9T balance sheet and support for the economy amid high inflation. Jobless numbers in the US ticked lower Thursday remaining at record lows as the labour market hangs tight following on from a marked decline in covid numbers. Non-Farm payroll prints tonight and could reflect a surprise uptick in the number of newly employed. The next point on the chart of interest is 0.7520, if we see price up here in the short term it will be a miracle.
Exchange Rates:
The current interbank midrate is: AUDUSD 0.7331
The interbank range this week has been: AUDUSD 0.7161- 0.7347