Aussie dollar trades above US$0.66
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Daily Currency Update
The Australian dollar is stronger this morning when valued against the Greenback, currently trading at 0.6617 at time of writing. The Aussie dollar rallied on Thursday to the round-level resistance of 0.6600 in the early New York session. The Aussie dollar witnesses significant buying interest as the risk appetite of the market participants has increased on expectations that the Federal Reserve will start reducing interest rates from the June policy meeting. On the data front, Australia’s trade surplus widened to 11,027M MoM in February versus 11,500M expected and 10,743M in the previous reading, according to the latest Aussie foreign trade data published by the Australian Bureau of Statistics on Thursday. Further details reveal that Australia's December Goods/Services Exports reprint 1.6% figures on a monthly basis versus 1.8% prior. The nation’s Goods/Services Imports grew 1.3% in February MoM versus 4.8% prior. There are no scheduled releases today.Key Movers
In the US, Federal Reserve Chair Jerome Powell told the House Financial Services Committee on Wednesday that incoming data will determine when they will start reducing the policy rate and repeated that they would like to have greater confidence inflation will move sustainably toward 2% before taking action. Powell in his prepared remarks to the House panel said rate reductions will "likely be appropriate" later this year "if the economy evolves broadly as expected" and once officials gain more confidence in inflation's steady decline. Though nothing is guaranteed and progress on inflation "is not assured," Powell regarded the economy as clear of immediate recession risks, with a low 3.7% unemployment rate and broad growth likely to continue, and an expectation that inflation will remain in decline. Looking ahead tonight and all eyes will be on the latest US employment report. Economists expect another round of solid jobs numbers, which would reaffirm that the labor market remains in good shape. Some early indicators pointed to a slowdown in employment growth in February.Expected Ranges
- AUD/USD: 0.6500 - 0.6700 ▲
- AUD/EUR: 0.5950 - 0.6150 ▲
- GBP/AUD: 1.9250 - 1.9450 ▼
- AUD/NZD: 1.0600 - 1.0800 ▲
- AUD/CAD: 0.8800 - 0.9000 ▼