interbank midrate

The Australian Dollar (AUD) is shaping up to register the biggest weekly decline in 2024 against the US Dollar (USD) as it continues to weaken off past 0.6690 to clock 0.6530 in early Friday sessions. Soft PMI reads and equity prices as well as precious metals and China markets have all weighed on the AUD this week. Signs of pending disinflation have markets confident the Fed will cut their interest rate at the September meeting. Fed officials however remain reluctant to start cutting sooner with incoming data still positive. On the chart we have support at 0.6400 to the downside.

The current interbank midrate is: AUDUSD 0.6546

The interbank range this week has been: AUDUSD 0.6511- 0.670

The Australian Dollar (AUD) has well and truly shifted off its bull trend against the US Dollar (USD) over the past few days coming off the high at 0.6795 to 0.6630 this morning. Risk flow’s have clearly been affected from President Biden dropping out of the presidential race with the flight to safety intensifying. Also, of note is struggling Chinese markets and a downturn in precious metals. The data front this week is thin with only advance US GDP q/q on the docket and predictions of a rise to 2.0% from May’s 1.4%. We expect a retest of the low at 0.6570 over the coming days as the AUD is sold.

Current Level: 0.6638
Resistance: 0.6800
Support: 0.6570
Last Weeks Range: 0.6679- 0.6787

The Australian Dollar (AUD) received a minor lift yesterday after jobs data came in mixed. The Aussie pushed up to 0.6740 from 0.6720 with unemployment publishing at 4.1% as expected. However, the number of employed people in June rose 50k keeping a lid on more upside. Also of note is recent Chinese data and falling commodity prices have affected the AUD. The Fed will look to start cutting interest rates in September and again at their December meeting which will lend a hand to AUD buyers. Heading into Friday trading the pair trades down at 0.6705 having retested 0.6700 support.

The current interbank midrate is: AUDUSD 0.6693

The interbank range this week has been: AUDUSD 0.6693- 0.6787

The Australian Dollar (AUD) reached 0.6798 Friday coming within a whisker of the yearly high. Monday morning was a different story as markets figured out the aftermath of the Trump assignation attempt. Risk flow turned down with the safe haven US Dollar (USD) sought. The cross dropping to 0.6720 early Tuesday. US Retail Sales published at 0.0% although the headline consensus was for a drop of    -0.3% in the month of June, US consumers are still spending despite signs of slowing in the economy. Tomorrow’s Australian employment data predicted at 4.1% should be bearish for the Aussie.

Current Level: 0.6730
Resistance: 0.6800
Support: 0.6570
Last Weeks Range: 0.6723- 0.6797

The Australian Dollar (AUD) extended its run higher against the US Dollar (USD) reaching 0.6790 this morning but failed to hold this level slipping back to 0.6755 at smoko. US Inflation was softer than expected weakening the USD overnight with June’s print at -0.1% compared to 0.1% expected. Year on year also ticked lower to 3.0% from 3.3% and below the predicted 3.1%. Bets have risen that the Federal Reserve will cut their interest rate in September. The Aussie has also done well of late from recovering commodity and equity prices. With the RBA one of the only G10 nations to not instigate rate cuts we could see further rises in the currency.

The current interbank midrate is: AUDUSD 0.6763

The interbank range this week has been: AUDUSD 0.6723- 0.6797