The Australian Dollar (AUD) remains the currency of choice for traders as it outperforms across the board. Against the US Dollar (USD) it holds firm in its bull trend despite falling from a lofty 0.7650 last week to 0.7395 yesterday. Improvements overnight with equity markets posting profits has the cross back at 0.7450 at the bottom of the recent range and poised to push higher we believe. Today’s Australian jobs data should boost prices with expectations of a bumper unemployment read at under 4%. US inflation rose to 8.5% in March up from February’s 8.4% the highest since December 1981 increasing stakes of rapid tightening by the Federal Reserve over the coming months opening up broad based big dollar demand. It certainly will be a good tussle between the two central banks, for now we support further upswings and a retest eventually of 0.7580.
The current interbank midrate is: AUDUSD 0.7452
The interbank range this week has been: AUDUSD 0.7390- 0.7493