Aussie within touching distance of 0.76
Daily Currency Update
The Aussie continued its upward trend on Friday, briefly retaking the 0.76 level before retreating shortly before the close. The Aussie primarily benefitted from a general positive market mood but gains were capped by softer than anticipated Australian macroeconomic figures. Nevertheless, the Aussie opens this morning just shy of 0.76 at 0.7590, a significant turn-around from the previous weeks low of 0.7476.There wasn’t too much on the economic calendar to drive momentum but US President Joe Biden announced on Friday that a bipartisan deal has been reached on the infrastructure plan. The announcement lacked specific details but there was enough there to boost wall street and consequently, other risk assets. The Aussie was no exception, although gains were tempered by softer data results earlier in the week. Specifically, May retail sales reported growth of 0.1%, down from 1.1% in April and Commonwealth Banks Flash PMI contracted from the previous month. The announcement of the Sydney lockdown also didn’t help.
Moving into a new week, the Aussie is set to enjoy a quiet week on the economic docket with direction to be driven by headlines and risk sentiment.
Key Movers
The Aussie continued its upward trend on Friday, briefly retaking the 0.76 level before retreating shortly before the close. The Aussie primarily benefitted from a general positive market mood but gains were capped by softer than anticipated Australian macroeconomic figures. Nevertheless, the Aussie opens this morning just shy of 0.76 at 0.7590, a significant turn-around from the previous weeks low of 0.7476.There wasn’t too much on the economic calendar to drive momentum but US President Joe Biden announced on Friday that a bipartisan deal has been reached on the infrastructure plan. The announcement lacked specific details but there was enough there to boost wall street and consequently, other risk assets. The Aussie was no exception, although gains were tempered by softer data results earlier in the week. Specifically, May retail sales reported growth of 0.1%, down from 1.1% in April and Commonwealth Banks Flash PMI contracted from the previous month. The announcement of the Sydney lockdown also didn’t help.
Moving into a new week, the Aussie is set to enjoy a quiet week on the economic docket with direction to be driven by headlines and risk sentiment.
The Great British Pound had an eventful week but ultimately succumbed to dovish signals from the Bank of England and the Delta strain of COVID-19 at the close. Opening this morning at 1.3877, the pound recorded a 0.29% decline on Friday to end the week under pressure. The role reversal from the previous weeks Fed induced rally came late last week as the Bank of England disappointed Hawks with their surprisingly dovish stance on Monetary Policy, a stark contrast to their counterparts across the Atlantic. Adding fuel to the fire was also more Brexit bickering and another rise in COVID-19 cases related to the much more infectious delta strain. The rapid rise in cases could threaten to derail the already delayed economic reopening which only exacerbated the pressures on the Sterling.
The Canadian dollar also enters our Key Movers section today as it appreciated 0.21% to open this morning at 1.2295. The Loonie, like the Aussie and Kiwi, benefitted from the turn in risk sentiment which saw commodity currencies rise against the Greenback. There wasn’t too much to drive the CAD domestically however.
Expected Ranges
- AUD/CAD: 0.9277 - 0.9390 ▼
- AUD/EUR: 0.6317 - 0.6393 ▲
- GBP/AUD: 1.8179 - 1.8398 ▲
- AUD/NZD: 1.0672 - 1.0801 ▼
- AUD/USD: 0.7544 - 0.7635 ▼