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Investors await Wednesday's FOMC Meeting as AUD holds gains


Holding near a two-year high, additional gains proved hard to come by for the Australian dollar on Monday with the domestic unit instead being supported by a Greenback which has continued to show very few signs of life. In a theme which is likely to continue ahead of Wednesday night’s Federal Reserve meeting, market participants have been wary of pushing the AUD towards the 80 US Cents mark in the aftermath of the RBA’s attempts to cool speculation that interest rates are heading higher. Having reached an overnight peak of 0.7967 when valued against its US Counterpart the Australian dollar opens marginally stronger this morning at a rate of 0.7922.

The New Zealand Dollar struggled to mount any significant directional momentum through trade on Monday bouncing off highs of 0.7456 and lows of 0.7418 against the Greenback. The Kiwi has ended its four-day rally having broken above two majors levels last week, we see the next major area of resistance up around 0.7485 last seen on September 2016. With little of note on the docket today attention squarely remains focused on the US Federal Reserve monetary policy meeting which is scheduled to take place tomorrow. 

The Great British Pound resumed its uptrend over the last 24 hours, seeing gains of 0.3% against the US dollar. Opening at 1.2990 yesterday, Cable shot through the psychological level of 1.30 during the local session to see an intraday high of 1.3050 despite a lack of local data. As the Sterling attempts another run at this month’s high of 1.3127, further direction will be seen based on this evenings UK Industrial orders which precedes the UK’s GDP figures on Wednesday evening. GBP/USD opens this morning at 1.3022.


The Greenback advanced over its major counterparts yesterday finding support on the back of better than expected PMI numbers. US manufacturing and services sectors expanded at their fastest pace in four months, the index was up 54.2 from the previous month of 53.9, resulting in a six-month high. On a sour note existing home sales data slipped for the month of June, retreating by 1.8% to 5.52 million amid low supply. Looking ahead today all eyes will be on Japanese Monetary Policy Meeting Minutes at 9.50am AEST. The JPY/USD pair is currently trading at 111.15. We now expect support to hold on moves approaching 110.80 while any upward push will likely meet resistance around 111.50.