Trading Thursday took the Australian Dollar (AUD), US Dollar (USD) from 0.6820 to 0.6700 levels into Friday, the Aussie giving back gains as market risk mood deteriorated. News that Rio Tinto had cut its dividend payment as earnings fell to its lowest level in 3 years weighed on the AUD. Earlier in the week Australian inflation dipped to 5.4% in the 12 months to June compared to 5.5% in the 12 months to May 2023, Quarterly the rate has dipped to 6.0% ending June from 7.0%, lower than the 6.20% consensus. Meanwhile, the Fed lifted rates to 5.5% as widely predicted, resuming their tightening policy yesterday which takes them to a 22 year high. Powell saying it was too early to make a call on whether they would need to raise further. We expect moves to extend to the downside with price to potentially retest support at 0.6600.
The current interbank midrate is: AUDUSD 0.6710
The interbank range this week has been: AUDUSD 0.6699- 0.6821