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AUD/USD falls 0.79% for the day despite hitting a 4 month high at 0.7441.

Tuesday 8 March, 2022

Daily Currency Update

Financial markets continue to be tumultuous in response to the war in Ukraine with the Australian Dollar being no exception. The Aussie initially appreciated rapidly to hit a four-month high of 0.7441 before being heavily sold off to close, down 0.79% for the day. Opening this morning at 0.7315, the Aussie continues to trade with commodity prices front of mind. Extreme moves in commodity markets continue to drive direction for the Aussie with Oil in particular, providing the impetus. Talk of Europe joining the US on a Russian Oil embargo further squeezed already very tight Oil prices even higher during the Asian session but ultimately unwound as news of a divided EU came to light. The EU is much more reliant on Russian Oil than the US by some 4m barrels to 700,000, so it comes as no surprise that some EU members, including Germany, were against a Russian Oil Embargo. Nevertheless, EU leaders will meet later this week to discuss phasing out Russian Oil. Other commodities seemed to take their cues from Oil with Palladium, Copper, Aluminum, Nickel, Wheat and others surging higher before falling later in the session. Moving into Tuesday, there is again very little on the economic calendar to drive direction. All eyes continue to look to Ukraine.

Key Movers

The Euro and Great British Pound continue to trade under significant downward pressure as the War in Ukraine continues to take its toll. The Euro fell 0.58% and the Sterling 0.94% on Monday. The Euro in particular would have fallen further if not for some intervention by the Swiss National Bank following through after the SNB said on the weekend said that it was “ready to intervene if necessary”. The Great British Pound unfortunately did not see any intervention and was sold heavily through intraday trade.

Expected Ranges

  • AUD/USD: 0.7243 - 0.7388 ▲
  • AUD/EUR: 0.6665 - 0.6800 ▲
  • GBP/AUD: 1.7734 - 1.8092 ▼
  • AUD/NZD: 1.0654 - 1.0782 ▼
  • AUD/CAD: 0.9310 - 0.9423 ▲