Home Daily Commentaries Aussie bounces back on Friday to test 0.73 level

Aussie bounces back on Friday to test 0.73 level

Daily Currency Update

The Aussie headed into the weekly close in a relatively stable condition, closing just below the 0.73 level after bottoming out at 0.7191 on Wednesday. Opening this morning at 0.7278, the Aussie continues to take direction from off-shore in lieu of any domestic support.
The Aussie continued to take momentum from global risk sentiment which bounced from risk on to risk off and then back to risk on last week. Initially the Greenback took center stage and strengthened across the board. Ultimately though, the European Central Banks commentary on Thursday supported risk assets which saw the Aussie bounce back to some degree although it struggled to break through 0.73 again.
Moving into a new week, the Aussie again finds itself with a scarce economic calendar early on although there will be a busy Thursday with Australian unemployment, NZ GDP and US FOMC statement to digest.

Key Movers

While the Aussie and the Kiwi were the best performers on Friday, the Euro also had a good showing, rising 0.25% against the Greenback after also succumbing to US Dollar strength earlier in the week. Closing in the green for the sixth continuous week, the Euro benefited from the European Central Banks lack of concern for the strengthening Euro with ECB President Lagarde stating that the ECB note the stronger single currency but currently don’t have any policy to address it.
Across the Channel, the Great British Pound continued its poor run despite a slight bounce back that was short lived. Opening this morning at 1.2793, the Pound has shed 500 pips against the USD over the course of last week as Brexit concerns continue to weigh on the Sterling. With the risk of a no-deal Brexit continuing to climb as December approaches and a clear lack of consensus between the EU and the UK, the Sterling is set to remain under pressure.

Expected Ranges

  • AUD/CAD: 0.9542 - 0.9651 ▲
  • AUD/EUR: 0.6101 - 0.6204 ▲
  • GBP/AUD: 1.7480 - 1.7655 ▼
  • AUD/NZD: 1.0869 - 1.0974 ▲
  • AUD/USD: 0.7219 - 0.7351 ▲