FX News

AUD/USD Conversion

Equity markets continued to rally into Wednesday taking the Australian Dollar (AUD) higher against the US Dollar (USD) to 0.7020, this comes as in the wake of another sell off in fixed income. Chinese Retail Sales Monday took price lower to 0.6870 after figures showed a sharp decline of -11.1% vs -6.2%, consumer spending has been hit by recent covid lockdown restrictions. US Core Retail Sales printed at 0.9% m/m for April and March’s numbers were upwardly revised from 0.5% to 1.4% highlighting improved consumer spending trends. Minutes from the RBA meeting on the 3rd of May shows the RBA are more open to a 40-point rise to rates rather than the talked about 15 points move in its hawkish comments, but a 25 point move in the middle of an election campaign is the likeliest outcome with federal elections being held this weekend. We may also see a larger 40 point move at their July meeting. The test heading into the close of the week will be whether the AUD can hold off dropping through 0.7000 again. If we see further rises in risk products the currency should retest the fortnightly high at 0.7075, watch for tomorrow’s wage data which could boost the Aussie.

Exchange Rates:
The current interbank midrate is: AUDUSD 0.7034
The interbank range this week has been: AUDUSD 0.6870- 0.7038

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