Fundamentally the Australian Dollar (AUD) remains offered against the US Dollar (USD) off the back of last week’s poor Aussie GDP read and better than expected non-farm payroll release. On the downside we expect the AUD to retest 0.6375 before any steadiness can be expected. Major support at 0.6350 is unlikely to be tested in the short to medium term. Also, the RBA will now be pressured to lean more on the accommodative side of policy going forward. We expect the RBA to hold interest rates at 4.35% at 4.30pm NZT today with labour numbers tight. However, we expect the RBA to hint at earlier than predicted cuts, possibly in February especially considering softer recent 3Q GDP.
Current Level: 0.6435
Resistance: 0.6800
Support: 0.6300
Last Weeks Range: 0.6372- 0.6509