Aussie dollar falls below 64 US cents
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Daily Currency Update
The Australian dollar is slightly weaker this morning when valued against the Greenback currently trading at 0.6379 at time of writing. The AUD/USD pair traded lower during European trading hours on Tuesday from an over four-month high of 0.6450 posted earlier in the day. The Aussie pair corrects sharply as the US Dollar (USD) gains despite increasing uncertainty over the bilateral trade outlook between the United States (US) and China. Australia's inflation rate has been dropping, and we'll get a look at first-quarter CPI. Annualized, inflation is expected to ease to 2.3% from 2.4% in Q4. The Q4 gain of 2.4% was the lowest reading since Q1 2021, driven by government subsidies for electricity and fuel, which dampened goods inflation. The RBA's trimmed mean CPI, a key core inflation gauge, is expected to drop to 2.9%, down from 3.2% in Q4 which was the lowest rate in three years. Core CPI remains well above the central bank's target of 2% but another decline will make a stronger case for a rate cut. The Reserve Bank of Australia left the cash rate unchanged at 4.10% and meets again in May. Resistance is found at 0.6450, and the 200-day SMA at 0.6464 remains a key hurdle. Support levels are identified at 0.6373, 0.6336, and 0.6336, with the pair likely to continue testing resistance.Key Movers
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, rebounds to near 99.30 after a steep correction on Monday. Market sentiment is favourable as investors expect the trade war will be limited between the world’s two largest powerhouses. S&P 500 futures have posted some gains in the European session, demonstrating an increase in risk appetite of investors. On the data front the number of job openings on the last business day of March stood at 7.19 million, the US Bureau of Labor Statistics (BLS) reported in the Job Openings and Labor Turnover Survey (JOLTS) on Tuesday. This reading followed 7.48 million openings (revised from 7.56 million) reported in February and came in below the market expectation of 7.5 million. Looking ahead and all eyes are on Friday's nonfarm payrolls, which surprised on the upside last month with a gain of 228 thousand, blowing past the forecast of 140 thousand. The markets are braced for a weak nonfarm payrolls release of 135 thousand.Expected Ranges
- AUD/USD: 0.6300 - 0.6500 ▼
- AUD/EUR: 0.5500 - 0.5700 ▼
- GBP/AUD: 2.0850 - 2.1050 ▲
- AUD/NZD: 1.0650 - 1.0850 ▲
- AUD/CAD: 0.8700 - 0.8900 ▼