Daily Currency Update

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AUD quiet leading up to employment data

AUD - Australian Dollar

The AUD fell throughout yesterday’s trading day, falling through the resistance floor of 0.675 to open at 0.6749 against the USD this morning.

Lack of movement in the market is not uncommon leading up to a large announcement, as employment data is scheduled to be released this Thursday. Forecasted to show a 14k rise, with unemployment expected to remain at 5.2%, traders are expecting a positive result from this that can further impact interest rate expectations which have taken a beating lately with numerous cuts as of late.

China data being released on Wednesday morning can also have a major impact on the Australian Dollar. The figures for industrial production will show if the Chinese economy is slowing down due to the increased tariffs with the US, and this will affect Australia as they are a close trading partner with China.

Key Movers

It was turmoil in Hong Kong as protestors in the airport caused all flights to be cancelled. This coupled with the escalating US-China trade war caused a risk-off sentiment overnight with most major currencies dropping, and only the safe-haven JPY and CHF outperforming.

The UK will release their monthly CPI data on Wednesday afternoon. Showing the change in the price of goods and services purchased by consumers, this is considered the UK’s most important inflation data as it is used as the central bank’s inflation target.

Major macroeconomic data is scheduled to be released on Thursday night by the US showing their retail sales figures. These figures will show the change in the total value of sales at the retail level which accounts for the majority of overall economic activity. Traders are expecting a bit of volatility with forecasts showing a 0.3% figure compared to the previous month’s of 0.4%.

Expected Ranges

AUD/CAD: 0.8850 - 0.8970 ▼

AUD/EUR: 0.5975 - 0.6050 ▼

GBP/AUD: 1.7760 - 1.8020 ▲

AUD/NZD: 1.0430 - 1.0515 ▲

AUD/USD: 0.6650 - 0.6790 ▼