interbank midrate

It’s surprising to see prices in the Australian Dollar (AUD), US Dollar (USD) climb higher off the weekly open given the state of geopolitical tensions developing in Israel. The Aussie has reversed all of last week’s losses reaching 0.6410 as I write. We would expect risk flow towards the end of the week to have an impact on movement with things expected to ramp up in Israel. Resistance at 0.6450 should hold leading into Friday’s US CPI y/y, the week’s main data release. The recent dovish Fed shouldn’t come into effect this week, instead markets most likely will be focusing on the “safe haven” play.

Current Level: 0.6420
Support: 0.6300
Resistance: 0.6500
Last week’s range: 0.6284 – 0.6443

The Australian Dollar (AUD) broke well below the game line Tuesday against the US Dollar (USD) clocking 0.6280, falling below support at 0.6350 a 1 year low. As risk sentiment returned the Aussie clawed back losses over the week to reach 0.6370 in early Friday. The new RBA governor Michele Bullock’s first meeting set the stage for a possible upcoming rate hike in November highlighting upside risks to inflation. All eyes now are now on 3rd quarter inflation with CPI still running hot. US Non-Farm Payroll releases late tonight expected to be a poor number based on midweek ADP suggesting a downside bias.

The current interbank midrate is: AUDUSD 0.6368

The interbank range this week has been: AUDUSD 0.6285- 0.6445

Aussie Labour Day Monday saw thin volatile market action in the Australian Dollar (AUD), US Dollar (USD) cross with the pair falling from 0.6430 area to 0.6360 into Tuesday. Last week’s drop to 0.6330 was the lowest traded price since October 2022, currently the Aussie will be doing well to avoid falling through the floor this week. The RBA later today will set the tone for upcoming policy meetings and rate settings, the Central Bank not expected to hike today from 4.10%. It’s the first policy meeting under the new governor Michele Bullock, how will she go? Certainly, with rising oil prices, rising inflation and a struggling Chinese economy she has her work cut out.

Current Level: 0.6366
Support: 0.6300
Resistance: 0.6500
Last week’s range: 0.6330 – 0.6500

It’s been a game of two halves this week with the Australian Dollar (AUD) falling to fresh lows around 0.6330 then reversing midweek all the way back to 0.6423 as we head into Friday. August monthly CPI in Australia rose 5.2% compared to the 4.9% seen in July inline with rough expectations. The jump was mostly attributed to rising fuel prices and housing costs. The RBA will continue to ponder if they need to raise rates from 4.10% before the end of the year. However next week’s RBA cash rate release is not expected to deliver any surprises.

The current interbank midrate is: AUDUSD 0.6429

The interbank range this week has been: AUDUSD 0.6330- 0.6443