Daily Currency Update

Get access to our expert daily market analyses and discover how your currency has been tracking with our exchange rate tools

Aussie tapers off as second-wave concerns grip the market

AUD - Australian Dollar

The Australian Dollar enjoyed a day of two halves, first capitalising on risk-on flows early on Friday before reversing course during the American session. Ultimately, the Aussie rose to a daily high of 0.6912 before falling about 0.12% for the day to close at 0.6835. Opening this morning at 0.6818, the Aussie opens slightly lower on a weekly basis.

With little on the economic calendar to drive direction markets continued to trade on global risk sentiment with currency markets noticeably souring as the day progressed. Spurred on by fears of a second wave of COVID-19 infections, particularly in China, the US and Brazil, markets swiftly lost their appetite for risk assets and commodity linked currencies such as the Aussie. With this latest dose of uncertainty, the US Dollar strengthened across the board to force the Aussie into bear territory.

Moving into a new week, the Aussie kicks things off early with RBA Governor Lowe set to speak at the Australian National University on COVID-19 and the global economy.

Key Movers

The US Dollar Index (US DXY) extended its recent winning streak into a fourth day, appreciating 0.25% to take it to its highest point since early June. Opening this morning at 97.66 the Greenback, a safe-haven currency, benefited from global risk sentiment souring in the face of a potential second wave of COVID-19 infections.

Across the pond, the Great British Pound hit a fresh three-week low to open this morning at 1.2348. Falling around 0.59% on Friday, the Sterling continues to remain under pressure after the Bank of England announced its intent to increase its bond-buying program by £100 billion. The result comes despite a better than expected Retail Sales reading and reports that Brexit negotiations are not nearly as bad as once thought. Nevertheless, a resurgent US Dollar, coupled with further monetary policy easing was too much for the Pound to overcome.

Expected Ranges

AUD/CAD: 0.9242 - 0.9333 ▲

AUD/EUR: 0.6046 - 0.6151 ▲

GBP/AUD: 1.8028 - 1.8209 ▼

AUD/NZD: 1.0613 - 1.0704 ▼

AUD/USD: 0.6776 - 0.6864 ▲