Home Daily Commentaries Aussie dollar closed the week above US$0.64 on the back of easing trade tensions

Aussie dollar closed the week above US$0.64 on the back of easing trade tensions

Brett Ottawa
Written by
Brett Ottawa

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market.

| Monday 5 May, 2025

Daily Currency Update

The Australian dollar is slightly stronger this morning when valued against the Greenback currently trading at 0.6404 at time of writing. The AUD/USD pair sees gains on Friday, strengthening to near 0.6430 as the US dollar softens. Chinese officials signal openness to trade talks, boosting optimism for the US dollar and easing trade tensions. Last week Australia’s Consumer Price Index (CPI) rose 0.9% QoQ in the first quarter (Q1) of 2025, compared with the 0.2% increase seen in the fourth quarter, according to the latest data published by the Australian Bureau of Statistics (ABS) on Wednesday. The market consensus was for a growth of 0.8% in the reported period. Annually, Australia’s CPI inflation steadies at 2.4% in Q1 versus 2.4% prior and above the market consensus of 2.2%. The central bank is meant to meet to decide on monetary policy on May 19-20. Over the weekend Australia’s Prime Minister Anthony Albanese has secured a second term in office in a disastrous night for the Coalition, as voters chose stability over change against a backdrop of global turmoil inflicted by US President Donald Trump.

Key Movers

The US dollar Index (DXY), which tracks the performance of the US dollar (USD) against six major currencies, remains capped and falls to 99.50 at the time of writing on Friday after a false break and firm rejection 100-marker. U.S. job growth slowed marginally in April, but the outlook for the labor market is increasingly darkening as President Donald Trump's aggressive tariff policy heightens economic uncertainty. Nonfarm payrolls increased by 177,000 jobs last month after rising by a downwardly revised 185,000 in March, the Labor Department said on Friday. Economists polled by Reuters had forecast 130,000 jobs added last month after a previously reported 228,000 advances in March. Gold (XAU/USD) price edged down over 0.35% on Friday, poised to end the week with losses of over 2.50%. XAU/USD trades at $3,226 after retreating from a daily high of $3,269. Next week traders are eyeing the release of the Federal Reserve’s monetary policy meeting, during which the US central bank is expected to keep rates on hold.

Expected Ranges

  • AUD/USD: 0.6300 - 0.6500 ▲
  • AUD/EUR: 0.5600 - 0.5800 ▲
  • GBP/AUD: 2.0300 - 2.0500 ▼
  • AUD/NZD: 1.0600 - 1.0800 ▼
  • AUD/CAD: 0.8750 - 0.8950 ▲

Written by

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market. He started his foreign exchange career with OFX more than a decade ago, as a private dealer catering to individual clients. He later transitioned to the corporate sector, assuming the position of Corporate Senior Relationship Manager. What truly excites Brett is the opportunity to engage with people, supporting their business growth and sharing in their successes.

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