Aussie dollar trades above US$0.63
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Daily Currency Update
The Australian dollar is slightly stronger this morning when valued against the Greenback currently trading at 0.6302 at time of writing. The Australian dollar (AUD) receives support from rising commodity prices, including Gold, Steel, and Iron Ore on Friday. However, The AUD/USD pair could face pressure from a strengthening US dollar (USD) amid growing fears of a global economic slowdown. Last week on the data front the NAB Monthly Business Survey for February indicated a marginal 1-point rise in business conditions, bringing the index to +4. This reflects small improvements in trading conditions and profitability, though these gains followed declines in January and remain well below the 2022 peak of +24. Mining remains the weakest-performing sector, despite some improvement from last month. Gains were seen in construction, transport and utilities, and recreation and personal services, while most other industries reported a decline in conditions. Looking ahead this week and all eyes will be on Thursday's unemployment rate decision. The jobless rate is expected to remain steady at 4.1%. Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions.Key Movers
The US dollar Index (DXY), which tracks the performance of the US dollar (USD) against six major currencies, dips lower again on Friday after a few headlines on tariffs and the US spending bill. Data released by the US Bureau of Labor Statistics on Thursday showed that the US Producer Price Index (PPI) rose 3.2% YoY in February, compared to the rise of 3.7% seen in January. This figure came in softer than the estimation of 3.3%. The core PPI rose 3.4% YoY in February versus 3.8% prior. On a monthly basis, the PPI was unchanged in February, while the core PPI declined by 0.1% during the same reported period. Meanwhile, on Friday US Consumer Sentiment took a dip in early March, according to the preliminary reading of the University of Michigan’s Consumer Sentiment Index. The gauge slipped from 64.7 in February to 57.9, missing the market’s forecast. The Dow Jones Industrial Average (DJIA) fought back at the brink on Friday, clawing back roughly 520 points following a string of bad losses that saw the Dow Jones crumble 3,373 points, or -7.66% peak-to-trough, over a two-week period. Gold prices retreat after hitting a record high, surpassing $3,000, as traders remain uncertain about US President Donald Trump's trade policies. This and the weakness of the US dollar drove the precious metal to reach an all-time high of $3,004 a troy ounce before retreating to $2,982, losing 0.21% in the day.Expected Ranges
- AUD/USD: 0.6200 - 0.6400 ▲
- AUD/EUR: 0.5700 - 0.5900 ▲
- GBP/AUD: 2.0250 - 2.0450 ▼
- AUD/NZD: 1.0850 - 1.1050 ▼
- AUD/CAD: 0.8950 - 0.9150 ▲