Aussie dollar remains relatively unchanged trading below US$0.67
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Daily Currency Update
The Australian dollar is unchanged this morning when valued against the Greenback, currently trading at 0.6636 at time of writing. The AUD/USD pair builds on its steady intraday ascent through the first half of the European session on Thursday and recovers further from its lowest level since August 16, around the 0.6615-0.6610 region touched the previous day. AUD/JPY breaks its three-day winning streak, trading around 101.20 during the European hours on Thursday. The Japanese yen (JPY) gained some traction as buyers might have responded to verbal intervention from Japanese officials earlier in the day. On the data front yesterday, the Judo Bank Australia Manufacturing PMI edged lower to 46.6 in October 2024 from 46.7 in September, a 53-month low, flash readings showed. This indicates a deterioration in the sector's health for the ninth consecutive month and at the fastest rate since May 2020. Flash Services PMI Business Activity Index edged up to 50.6 in October from 50.5 in September, according to preliminary estimates. It was the ninth consecutive month of expansion. Composite PMI Output Index inched higher to 49.8 in October, from 49.6 in September, flash readings showed. This indicates a second consecutive month of declining private sector output, though the decrease was marginal and less pronounced than before.Key Movers
The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, retreated on Thursday, giving up some of the gains accumulated during a solid week marked by a stellar performance. The markets have fully priced out the possibility of a more aggressive policy easing by the Federal Reserve (Fed), as the recent US macro data suggested that the economy remains on strong footing. The CME FedWatch Tool indicates a 90% probability of a 25-basis-point rate cut at the November 7 Fed meeting. In other news, the flash US S&P Global October Composite PMI came in at 54.3, slightly above estimates, with services expanding at 55.3 and manufacturing contracting for the third straight month. Despite the overall PMI improvement, employment in the US fell slightly for the third month, reflecting uncertainty ahead of the upcoming presidential election.Expected Ranges
- AUD/USD: 0.6550 - 0.6750 ▲
- AUD/EUR: 0.6050 - 0.6250 ▲
- GBP/AUD: 1.9400 - 1.9600 ▼
- AUD/NZD: 1.0900 - 1.1100 ▲
- AUD/CAD: 0.9100 - 0.9300 ▲