Recent backtracks of forecasted rate hikes by the Federal Reserve has seen the US Dollar (USD) underperform a little. The Australian Dollar (AUD) however remains soft off the back of commodity price losses including poor performing iron ore. Easing covid restrictions in China have helped to stabilise key commodities which assist to underpin the Australian economy. It’s been a quiet week thus far with the cross hovering between recent ranges around the 0.6910-mark Tuesday morning. Core US CPI came in at 0.7% as markets await the final US GDP read Thursday. This is predicted to be -1.5% confirming the economy is heading for a recession. With a hike next week of 50 points when the RBA meet, we expect the Aussie may just tick higher above 0.7000 in the coming days.
Current Level: 0.6924
Last Weeks Range: 0.6868-0.6995