Daily Currency Update

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AUD pushes through 0.68 as trade talks set to resume

AUD - Australian Dollar

The Australian dollar rallied through trade on Thursday pushing through 0.68 to touch intraday highs at 0.6830. Reports the US and China will resume trade talks bolstered investors appetite for risk while a strong trade surplus help solidify gains. The AUD out performed most counterparts jumping against traditional haven assets like the Yen and Swiss Franc.

Resistance on moves approaching 0.6830 will likely remain intact throughout the domestic session today with little of note gracing the local docket. Instead market attentions turn to US labour market performance and commentary from Fed President Jerome Powell. Thursdays ADP advanced non-farm payroll data suggests a stronger than anticipated print may be at hand with job gains beyond 160,000 easing pressure on the Fed to issue a second rate cut. Should the AUD push through resistance and extend gains beyond 0.68 a soft payroll print coupled with a dovish address from Powell are needed. Investors still appear reluctant to continue long run upside moves as the Trade dispute and additional RBA rate cuts cast a cloud over AUD performance.

Key Movers

The Great British Pound closed the day’s top performer, advancing against all G10 counterparts as Parliament wrested back control of the Brexit process from newly appointed Prime Minister Boris Johnson, reducing the likelihood a no-deal Brexit will pass. Sterling jumped through 1.23 to touch 1.2353 and opens only marginally lower this morning.

Safe haven currencies were the day’s big losers with the Yen and Swiss Franc both correcting lower. The USD pushed through 107 against the Yen touching 107.22 as demand for risk improved with thawing trade and geo political tensions.

Expected Ranges

AUD/USD: 0.6720 - 0.6860 ▲

AUD/EUR: 0.6130 - 0.6190 ▲

GBP/AUD: 1.7880 - 1.8220 ▲

AUD/NZD: 1.0630 - 1.0730 ▼

AUD/CAD: 0.8960 - 0.9050 ▲