The Australian Dollar (AUD) has regained the edge on the US Dollar (USD) after last week’s losses reaching 0.6760 this morning after being down around 0.6580 areas. Risk sentiment improved as the greenback came under pressure. Governor Lowe was on the wires saying policy is by no means set in stone and the next few RBA meetings may result in large hikes if needed. Dovish Fed speak hasn’t helped the USD with the Fed pointing to slower rate hikes while they acknowledged “significant uncertainty” on the horizon. While we expect the Aussie to improve further and retest 0.6900 we think the rally theme of late may be close to being exhausted.
The current interbank midrate is: AUDUSD 0.6765
The interbank range this week has been: AUDUSD 0.6583- 0.6777