Daily Currency Update

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Aussie opens at 0.7170

AUD - Australian Dollar

Financial markets were quiet to round out a week in which the Australian Dollar traded sideways against the US Dollar. The Aussie faltered on approach to the key 0.72 handle, reaching the weekly high of 0.7189 on two occasions, before retreating lower through trade. Notably, the Aussie was able to rise over 1% against the New Zealand Dollar last week as the Reserve bank of New Zealand delivered a dovish monetary policy stance and the domestic economy went back into a COVID-19 lockdown as new cases emerged.

AUD/USD opened this morning around the 0.7170 handle with the US-China trade tensions expected to weigh on the pair this week. Today’s data docket is relatively light, headlined by Japanese GDP figures for Q2.

As we touched on above, first lines if resistance are seen at 0.7189 before 0.7200 whilst on the downside, the weekly low of 0.7110 acts as initial support.

Key Movers

Taking a global look at markets, US-China trade tensions continue to grab headlines however are having a more muted impact on markets. This weekend saw President Trump put a 90 day deadline on the sale of Chinese owned video sharing app ‘Tik Tok’ as US buyers which reportedly include Microsoft, have strong interest in acquiring it. Risk assets were little moved.

Concerns over a second wave of COVID-19 in Europe saw European equity markets retreat nearly 2% on Friday. Economic Data out of the US was much better than expected with retail sales in particular having a bounce back in the month of July to reach pre-covid levels

Expected Ranges

AUD/USD: 0.7110 - 0.7200 ▲

AUD/EUR: 0.6010 - 0.6090 ▼

GBP/AUD: 1.8175– 1.8350 ▼

AUD/NZD: 1.0915 - 1.1000 ▲

AUD/CAD: 0.9430 - 0.9550 ▲