Daily Currency Update
Price action through trade on Thursday was largely understated with US markets closed in observance of Thanksgiving celebrations. While tracking within a narrow range the AUD did edge higher, pushing back above US$0.6550 on the heels of an extension in CNY gains against the USD. The USD slipped below 7.12, marking intraday lows at 7.1128, as the PBOC continues to set an aggressive daily fix, surpassing market estimates. The AUD poked its head above US$0.6570, touching highs at US$0.6571, before retreating and tracking between US$0.6550 and US$0.6560 for much of the overnight session. Our attentions turn now to US PMI data. With markets uber sensitive to anything that might disrupt the Fed policy cycle, a print outside expectations could prompt an oversized move particularly as US investors return from holiday.
Key Movers
Net moves across major units were muted Thursday with US markets closed in observance of thanksgiving and other markets sidelining major bets until US trade resumes. The great British pound has been the best performer through the last 24 hours, buoyed by a stronger than expected PMI print. Key Service data pushed above the line of contraction, marking a four month high and opening the door to a possible uptick in GDP growth through Q4. Sterling pushed back above 1.25, marking session highs of 1.2530. In contrast the euro tracked sideways and remains near 1.09 after Euro area PMI data continues to show a contraction in activity, while German budget issues create a heightened level of uncertainty. With the USD consolidating a move above 149.50 against the yen, our attentions turn now to Japanese CPI data, a Germany IFO survey, and US PMI’s for direction into the weekly close.
Expected Ranges
- AUD/USD: 0.6480 - 0.6590 ▲
- AUD/EUR: 0.5980 - 0.6050 ▲
- GBP/AUD: 1.8900 - 1.9300 ▲
- AUD/NZD: 1.0800 - 1.0900 ▼
- AUD/CAD: 0.8920 - 0.9020 ▲