The Australian Dollar (AUD) has been a top performer across the main board of currencies this week based on the only central back looking to delay rates until early next year, this has created divergence in currency movements. However, we have still seen a slide to 0.6830 over the week but the drops have been well supported compared to other currencies which have freefallen. Iran launched around 200 ballistic missiles into Israel earlier in the week, Israel’s Netanyahu vowing to fight back with force. Risks of full-blown war in the region are real with market appetite to take on “risk” products poor. Attention now is with US Non-Farm Payroll (NFP) tomorrow morning, anything softer than forecast could highlight the need by the Fed to cut rates deeper. Downside risks in the AUD remain.
The current interbank midrate is: AUDUSD 0.6843
The interbank range this week has been: AUDUSD 0.6828- 0.6941