The Australian Dollar (AUD) extended gains Monday off 0.6880 against the US Dollar (USD) into Tuesday sessions to 0.6960 as it targets the key 0.7000 zone. A mix of equity markets tracking higher and weak US data has pushed up the Aussie. US unemployment was soft coming in at 251,000 over 240,000 a new 8 month high, also US PMI was light adding speculation of a global downturn ahead. Analysts have been calling for more aggressive rate hikes from the RBA, meanwhile this week’s Federal Funds rate and policy announcement will be our focus. The Fed is also expected to take a tough approach to lowering inflation and could hike as much as 75-100 points on Wednesday. The biggest move since 1994. Topside moves in the cross may be limited.
Current Level: 0.6955
Last Weeks Range: 0.6781-0.6975