We have seen a slew of economic releases publish over the past couple of days moving the Australian Dollar eventually higher to 0.6830 into Friday sessions against the US Dollar (USD). The Federal Reserve cut rates yesterday morning by 50 points to 5.00% surprising markets based 25-point forecasts. The AUD shot lower weirdly to post 0.6740 before Australian jobs data later in the day pushed the AUD back towards 0.6830 where it should have been earlier. Unemployment numbers were better than predictions and the unemployment rate remains at 4.2%. As wage growth has remained buoyant this has led to inflation struggling to return to the RBA’s target, this being said the RBA will hold their cash rate at 4.35% next Tuesday. We expect further upside moves to continue to push into fresh yearly highs past 0.6830.
The current interbank midrate is: AUDUSD 0.6810
The interbank range this week has been: AUDUSD 0.6688- 0.6838