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Australian Dollar finds near-term support around 0.6750

AUD - Australian Dollar

In the absence of any top tier local data the AUD/USD moved within a tight range during Asian trade on Thursday and managed to bounce off the 0.6750 level which is proving to be an area that is showing a lot of choppiness. Overnight we saw a brief rally touching 0.6780, unfortunately this was short-lived as the US Dollar in continuing to benefit from political uncertainty and global growth concerns.

Australia did see the release of Job vacancies which recorded a drop of 1.9 per cent over the three months to August, with the drop in classifieds accelerating from the previous quarter. Employers in August advertised 235,100 positions, according to seasonally adjusted data released on Thursday by the Australian Bureau of Statistics. The figures along with a range of other indicators suggest the rate of employment could rise above last months’ 5.3 per cent number.

There are no scheduled releases locally today. From a technical perspective, the AUD/USD pair is currently trading at 0.6748, we see initial support at 0.6710 followed by 0.6700. The market faces near term resistance at 0.6780 and 0.6800.

Key Movers

The US Dollar Index (DXY) is rallying towards its yearly high witnessed at the start of the month, the DXY hit a high of 99.28 overnight as comments from Chinese officials said Beijing is ‘preparing for positive progress’ next month in Washington. Meanwhile, Trump said a deal ‘could happen sooner than you think’. On the impeachment inquiry, A House committee released a whistle-blower report that alleges Trump tried to get Ukraine to investigate the son of former VP Joe Biden. In other news, US Pending Home Sales were up 1.6% in August showing signs of an improving market and Initial Jobless claims edged up slightly from 210k to 213k for the week.

The Pound continues to weaken falling below the 1.24 handle overnight mostly driven by political sentiment and the EUR/USD also finds itself lower buying 1.0920.

Expected Ranges

AUD/USD: 0.6720 - 0.6780 ▼

GBP/AUD: 1.8100 - 1.8320 ▼

AUD/NZD: 1.0700 - 1.0770 ▲

AUD/EUR: 0.6145 - 0.6190 ▼

AUD/CAD: 0.8920 - 0.8980 ▼