Monday 24th of October
Having broken through 0.77 and touched two month highs in early trade last week the Australian dollar suffered a heavy sell off through trade on Friday as investors drove the U.S dollar higher. The Greenback’s dollar index rallied to its highest level in 10 months as traders followed heightened expectations of a Federal Reserve interest rate hike in December, forcing the AUD to intraday lows at 0.7589. The Aussie dollar has struggled to break beyond lows of 0.7460 and highs of 0.77 in the four months since the end of June and last week’s rally looked to signal a possible breakout., however the rapid retreat appears to have closed the door on any short term upward push with ranges expected to be choppy into the U.S Presidential election. Attentions this week turn to Wednesday’s CPI inflation print as a key marker for future RBA monetary policy and a possible trigger point for additional interest rate adjustments.