Home Daily Commentaries AUD sees spike due to RBA announcement

AUD sees spike due to RBA announcement

Daily Currency Update

AUD - Australian DollarThe AUD was all over the place yesterday during yesterday’s trading session, rising to 0.6797 then falling to an almost 1 month low of 0.6759 against the USD. The rise was owing to the RBA announcement yesterday holding rates at 1% as it suggested it will wait before cutting its interest rate again after back-to-back cuts, but came back down again as the market settled. Expectations are that there is the potential to weaken a little further with more cuts forecasted for the future. The Reserve Bank of Australia is scheduled for 2 announcements on Friday morning. Governor Lowe is due to testify before the House of Representative’s Standing Committee on Economics, in Canberra and traders will scrutinize his speech as they are often used to drop subtle clues regarding future monetary policy.The RBA will also release their quarterly Monetary Policy Statement that provides valuable insight into the bank’s view of economic conditions and inflation, and includes key factors that influence their interest rate decisions.

Key Movers

The US-China trade war continues to grab headlines as the PBOC fixes the Chinese Yuan lower, the weakest level in over a decade being labelled a ‘currency manipulator’ by the US Treasury. Reports are still that China may hold off on agreeing to a deal until after the election next year.In further macroeconomic news, the UK’s Office for National Statistics will release their results for the nation’s GBP this Friday evening. Showing the change in the total value of all goods and services produced by the economy, it is the broadest measure of economic activity and the primary gauge of the economics’ health. The Canadian Dollar can also expect to see major movement with their monthly employment data also being released Friday night. The change in the number of employed people is an important leading indicator of consumer spending, that in turns accounts for a majority of overall economic activity.

Expected Ranges

  • AUD/CAD: 0.8910 - 0.0915 ▼
  • AUD/EUR: 0.5985 - 0.6070 ▼
  • AUD/GBP: 1.7855 - 1.8150 ▲
  • AUD/NZD: 1.0310 - 1.0385 ▼
  • AUD/USD: 0.6720 - 0.6790 ▼