Daily Currency Update

AUD - Australian Dollar

The Australian dollar is stronger this morning when valued against the Greenback as risk sentiment continues to improve. The Aussie dollar reached an overnight high of 0.6879, the highest level since mid-September. Yesterday on the release front the People Bank of China’s decided to leave rates unchanged at 4.2%. The Aussie dollar also found some support after United States President Donald Trump stated that the trade deal with China was “coming along great,” adding that he hopes to sign a deal with China at the Chile APEC summit, scheduled for next November.

Looking ahead today and there are no scheduled releases in Australia but Brexit headlines should keep everybody busy. From a technical perspective, the AUD/USD pair is currently trading at 0.6866. We continue to expect support to hold on moves approaching 0.6820 while now any upward push will likely meet resistance around 0.6900.

Key Movers

The Great British Pound is stronger this morning reaching a 5-1/2 month high on hopes for a Brexit deal. The Sterling rose on Monday crossing the $1.300 threshold against the Greenback after the Northern Irish Democratic Unionist Party said it would not support any amendments to the Brexit deal for a customs union with the European Union. The delay on Brexit was seen as a positive. Looking ahead today in the UK Leader of the House of Commons Jacob Rees-Mogg announced that a second reading of the Withdrawal Agreement Bill will take place on Tuesday. Leader of the Commons Jacob Rees-Mogg said not backing the proposed schedule could stop the UK meeting the 31 October Brexit deadline. UK Prime Minister Boris Johnson agreed a deal with the European Union last week, but requires the approval of both the UK and EU parliaments to come into force.

From a technical perspective, the GBP/USD pair is currently trading at 1.2960. We continue to expect support to hold on moves approaching 1.2930 while now any upward push will likely meet resistance around 1.2995.

Expected Ranges