Home Daily Commentaries Aussie dollar falls below US$0.65

Aussie dollar falls below US$0.65

Brett Ottawa
Written by
Brett Ottawa

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market.

| Monday 12 February, 2024

Daily Currency Update

The Australian dollar is weaker this morning when valued against the Greenback trading at 0.694 at the time of writing. The Aussie dollar continued to trade around the psychological level of 0.6500 on Friday, retracing the losses registered in the previous two sessions. The Australian dollar may have found some support as Reserve Bank of Australia (RBA) Governor Michele Bullock reaffirmed the RBA's commitment to managing inflation, noting encouraging signs in inflation data. Last week the Reserve Bank left its interest rate unchanged for a second meeting in a row, stoking the hopes of Australia’s borrowers that the peak of repayment pain has passed. At its first board meeting of 2024, the board on Tuesday left its cash rate at 4.35%. The decision was anticipated by all 29 economists surveyed by Reuters. In a subsequent media conference, RBA governor Michele Bullock said the bank’s stance remained “restrictive” and that getting inflation down remained its priority.
Looking ahead this week and On Tuesday we will see the release of both the Westpac Consumer Sentiment and the National Australia Bank (NAB) Business Confidence Survey. Both surveys are a leading indicator of economic health which businesses react quickly to market conditions, and changes in their sentiment can be an early signal of future economic activity such as spending, hiring, and investment. On Thursday the Australian Bureau of Statistics will release the latest Unemployment Rate which is expected to rise from the previous month up from 3.9% to 4%.

Key Movers

In the US on Friday US Initial Jobless Claims declined to 218K in the week ending on February 2, from the previous week's 227K, surpassing the estimated figure of 220K. Continuing Jobless Claims dropped to 1.871M for the week ending January 26. Market forecasts anticipated a decrease of 1.878M from the previous reading of 1.894M. US Wholesale Inventories remained consistent at 0.4%, as expected. The Atlanta Fed's wage growth tracker has declined to 5.0% in January from 5.2% reported in December. This represents the lowest growth rate since December 2021, when it stood at 4.5%. The S&P 500 (SPX) index rose 0.57% to close the session at 5,026.61. The Dow Jones (DJIA) dropped 0.14% to end at 38,671.69, while the Nasdaq (IXIC) gained 1.25% to finish at 15,990.66. The Technology Sector was the best-performing major S&P 500 sector mid-day, rising more than 1.5%. The Energy Sector is down nearly 1.6%. Applied Materials Inc (AMAT) closed higher more than 6.8% as the top gainer in the S&P 500. Expedia Inc. (EXPE) shed nearly 18% at $131.11.

Expected Ranges

  • AUD/USD: 0.6400 - 0.6600 ▲
  • AUD/EUR: 0.5900 - 0.6100 ▲
  • GBP/AUD: 1.9200 - 1.9400 ▼
  • AUD/NZD: 1.0400 - 1.0600 ▼
  • AUD/CAD: 0.8600 - 0.8800 ▲

Written by

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market. He started his foreign exchange career with OFX more than a decade ago, as a private dealer catering to individual clients. He later transitioned to the corporate sector, assuming the position of Corporate Senior Relationship Manager. What truly excites Brett is the opportunity to engage with people, supporting their business growth and sharing in their successes.