Aussie dollar continues to trade above 65 US cents
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Daily Currency Update
The Australian dollar is relatively unchanged this morning when valued against the Greenback, trading at 0.6541 at time of writing. The AUDJPY pair extended its winning streak for the sixth consecutive day as the Aussie Dollar strengthened against the Japanese yen following the Reserve Bank of Australia's (RBA) meeting minutes earlier in the week, which has transformed market bias towards the possibility of no rate cuts soon. During yesterday's session, the AUD/JPY pair was spotted making moderate gains, trading at the 98.30 level.In the fourth quarter, Australian wages grew at the fastest annual pace in 15 years, as low unemployment and stiff competition for workers pushed up pay deals. Although, analysts suspect the best is over as the economy sputters. Figures from the Australian Bureau of Statistics on Wednesday showed the wage price index rose 0.9% in the December quarter, matching market forecasts. Wages jumped a record 1.3% the previous quarter, thanks to hefty minimum pay awards. Annual pay growth picked up to 4.2%, from 4.1%, the highest since early 2009 and just above market expectations of 4.1%, due to upward revisions to past numbers. Analysts expect wage growth would moderate from here as the red-hot labour market loosens. A welcome sign for the Reserve Bank of Australia, which has raised interest rates by 425 basis points to a 12-year peak of 4.35% to tame inflation. Looking ahead today, we'll see the release of the Flash Manufacturing PMI, a survey of about 400 purchasing managers that asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
Key Movers
In the US, Federal Reserve officials indicated at their last meeting that they were in no hurry to cut interest rates and expressed both optimism and caution on inflation, according to minutes from the session released on Wednesday. The meeting summary did indicate a general sense of optimism that the Fed’s policy moves had succeeded in lowering the rate of inflation, which in mid-2022, hit its highest level in more than 40 years. However, officials noted that they wanted to see more before starting to ease policy while saying that rate hikes are likely over. Before the meeting, a string of reports showed that inflation, while still elevated, was moving back toward the Fed’s 2% target. Meanwhile, Wednesday marked the third day in a row that US stocks declined, as traders look ahead to Nvidia’s latest quarterly earnings report. The Dow Jones Industrial Average traded 176 points lower, or 0.4%. The S&P 500 slipped 0.5% and the Nasdaq Composite slid nearly 1.1%. Nvidia is slated to post its fiscal fourth-quarter results after the bell. Concerns surrounding Nvidia’s high valuation have grown leading up to the announcement, as shares of the chipmaker have soared about 230% over the past year. The stock slid more than 3.5% on Wednesday.Expected Ranges
- AUD/USD: 0.6450 - 0.6650 ▲
- AUD/EUR: 0.5950 - 0.6150 ▲
- GBP/AUD: 1.9200 - 1.9400 ▼
- AUD/NZD: 1.0500 - 1.0700 ▲
- AUD/CAD: 0.8750 - 0.8950 ▲