AU
CA
HK
NZ
SG
UK
USDaily Currency Update
Get access to our expert daily market analyses and discover how your currency has been tracking with our exchange rate tools
IMPORTANT: This information has been prepared for distribution over the internet and without taking into account the investment objectives, financial situation and particular needs of any particular person. OzForex Limited ABN 65 092 375 703 (trading as “OFX”) and its subsidiaries make no recommendations as to the merits of any financial product referred to in the website, email or its related websites. Please read our Product Disclosure Statement and our Financial Services Guide.
DISCLAIMER: OFX makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this website. Read full disclaimer. OFX provides international money transfer services to private clients and business customers. Use our free currency converter, exchange rate charts, economic calendar, in-depth currency news and updates and benefit from competitive exchange rates and outstanding customer service.
OFX is regulated in Australia by ASIC (AFS Licence number 226 484). Read our Money Laundering Statement and Privacy Policy.
Aussie moves lower as a Trade War resolution looks more and more distant
AUD - Australian Dollar
The Australia dollar was whittled lower overnight as skepticism on Trumps reported weekend phone conversation with China entered the market. Opening this morning at 0.6753, the risk-aligned Australian dollar started the session in a buoyant mood, trading as high as 0.6780 before unwinding any optimism throughout the day. Initially buoyed by reports from Trump that US and Chinese officials spoke over the weekend, the Aussie followed equity and bond markets higher, challenging resistance at 0.68. This was however, emphatically debunked by Chinese officials with the Ministry of Finance, in particular saying they had not heard of this phone conversation taking place which saw risk sentiment turn and the Kiwi sold lower.
Moving into Wednesday, the Aussie looks to enjoy a relatively quiet day on the economic calendar with only a report on Construction Work Done to look forward to. Otherwise, there isn’t too much off-shore releases to drive momentum either but as always, the market will keep a close eye on the Trade War.
Key Movers
The Great British Pound was the clear best performer overnight as optimism that a no-deal Brexit might be averted gained traction. The Sterling gained 0.6% to hit 1.23 against the Greenback, its highest point in a month. The Guardian reported that the UK and EU might still find a way forward as EU officials mentioned they are willing to listen to realistic proposals on the Irish backstop. Whether Prime Minister Johnson can come up with a solution is another matter but the market nevertheless reacted positively to signs that the door to a orderly divorce a still ajar. On the other side of Parliament, Jeremy Corbyn met with opposition parties to determine a path to avoid a no-deal Brexit. The BBC reports that anti-Brexit MP’s are planning to apply for an emergency debate as soon as next week.
Also finding its way higher was the Japanese Yen which traded upwards on the risk-off tone in global markets. Moving 0.3% higher, to open this morning at 105.78 and be the second best performer for the day.
Expected Ranges
AUD/CAD: 0.8922 - 0.8999 ▼AUD/EUR: 0.6046 - 0.6116 ▼
GBP/AUD: 1.8156 - 0.8239 ▲
AUD/NZD: 1.0581 - 1.0648 ▲
AUD/USD: 0.6712 - 0.6791 ▼