AUD decline stalled as supports kick in
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Daily Currency Update
The Australian dollar was well contained through trade on Monday, edging marginally higher on a broader USD dip. With little of note on the domestic docket, the AUD edged off lows just above US$0.6360 to trade back toward US$0.6370, yet showed little signs of any meaningful recovery. Yields were little changed, while China activity data saw retail sales mark an unexpected fall through November.Consumption remains sluggish in China as House prices continue to decline. With the Chinese yuan edging lower, the PBOC successfully prevented any further route and broke above 7.29. Yuan stability helped the AUD and our attention turns now to local consumer confidence data, German IFO and ZEW surveys, UK labour data, Canadian CPI and US retail sales as key markers headlining a crowded macro ticket.
Key Movers
Price action among currencies was well contained through Monday with the USD DXY index maintaining a narrow trading handle, edging just one-tenth of a per cent lower. The Japanese yen was the day's underperformer, giving up 0.3% with little obvious catalyst. Global PMI’s were mixed with services data printing higher while manufacturing activity slowed. European Services data surprised investors, climbing back into expansionary territory after a softer print in November.The euro climbed off lows below 1.05, to mark intraday highs just above 1.0520. Our attention now turns to German IFO and ZEW surveys, UK labour data, Canadian CPI and US retail sales as key markers headlining a crowded macro ticket.
Expected Ranges
- AUD/USD: 0.6300 - 0.6450 ▲
- AUD/EUR: 0.6000 - 0.6100 ▲
- GBP/AUD: 1.9700 - 2.0100 ▲
- AUD/NZD: 1.0980 - 1.1080 ▼
- AUD/CAD: 0.9020 - 0.9120 ▲