interbank midrate

The Australian Dollar (AUD) soared past daily resistance at 0.6695 mid-week to reach 0.6730 this morning against the US Dollar (USD) as the greenback comes under pressure. Sticky Aussie inflation is still causing concerns for the RBA with Retail Sales coming in at 0.6% for May above expectations of 0.3% and 0.1% in April. Also of concern is the real possibility the RBA will raise rates from 4.35% at their August meeting. On the other hand, the US PMI data for June came in weaker dragging the greenback down. Non-Farm Payroll is tonight with anything higher than 191,000 new jobs added to boost the USD.

The current interbank midrate is: AUDUSD 0.6732

The interbank range this week has been: AUDUSD 0.6633- 0.6733

The Australian Dollar (AUD) looked good Monday pushing up to 0.6690 from 0.6620 areas Friday against the US Dollar (USD) but has since dropped back to the bottom of the bull channel to 0.6650 as we head into Tuesday sessions. Rallying metal prices, gold, silver and steel have all helped the AUD higher. RBA minutes could reveal risks the central bank could hike interest rates by 25 points in the coming monetary policy meeting on August 6th with the recent “cost of living” dilemma. All eyes later in the week will be on US Non-Farm Payroll  and unemployment with expectations employment should moderate.

Current Level: 0.6648
Support: 0.6630
Resistance: 0.6700
Last week’s range: 0.6618- 0.6688

The Australian Dollar (AUD) gapped lower off Monday’s open against the US Dollar (USD) but managed to recover to 0.6660 levels this morning. After the run up from the low at 0.6360 levels the pair has consolidated over the past 5 weeks pivoting around 0.6650. With the RBA monetary policy stance offering upside bias to the Aussie we expect momentum should remain for a while. Retesting the 0.6700 top of the recent range is our view this week, certainly a daily close above this level should signal further big picture trend north. Australian CPI y/y prints tomorrow with expectations around 3.8% ticking higher from 3.6%. This should bring about further “higher for longer” and possible hike speak from the RBA.

Current Level: 0.6654
Support: 0.6570
Resistance: 0.6700
Last week’s range: 0.6584- 0.6678

The Australian Dollar (AUD) has easily been the strongest performing currency on the main board this week rising to 0.6670 against the US Dollar (USD) cancelling most of last week’s losses. However, we still need a break above 0.6700 or a move below 0.6570 to really highlight a trend change either way from predominantly sideways moves over the past 5 weeks or so. The RBA cash rate remains unchanged at 4.35% as widely predicted, but the Reserve Bank warned of the potential for upticks to inflation and price pressures suggesting there was still a small chance of a hike. The RBA saying it will be some time yet before inflation is safely within their target band of between 2-3% – currently 3.6%. We expect the AUD/USD to retest 0.6700 over the coming days.

The current interbank midrate is: AUDUSD 0.6656

The interbank range this week has been: AUDUSD 0.6584- 0.6678

The Australian Dollar (AUD) opened the week in similar zones around 0.6600 against the US Dollar (USD) as markets await today’s RBA rate decision. If anything, The Aussie has pushed up a little in early morning trading from 0.6580 on positive Chinese Retail Sales data printing at 3.7% y/y vs 3.0% expected- 2.3% prior. Today’s RBA rate announcement will remain unchanged at 4.35%. Bullocks statement should highlight if its time yet to change policy after suggestions over the past few weeks proposed the door was still open for further hikes. For now, setbacks are well supported in the Aussie following the run up from 0.6360.

Current Level: 0.667
Support: 0.6570
Resistance: 0.6715
Last week’s range: 0.6573- 0.6703

A range bound Australian Dollar (AUD) continues to bounce around levels at 0.6650, a game of two halves this week, improving to 0.6700 but unable to hold dropping back to 0.6630 Friday. Positive risk flow followed by a less than impressive US CPI read sent the Aussie higher as the fed tapered back cuts from 6 this year to 1 indicating the central bank was in no hurry to lower rates. The bank retaining its cash rate at 5.50% widely expected. Stiff support sits at 0.6600 on the chart with bullish continuation expected to continue from the low around 0.6400 mid-April.

The current interbank midrate is: AUDUSD 0.6622

The interbank range this week has been: AUDUSD 0.6573- 0.6703