Australian Dollar weaker on thin trading volumes
Tuesday 8 October, 2019
Daily Currency UpdateAUD - Australian DollarIt was a relatively quiet day for the Aussie locally with trading volumes subdued as many Australian states were observing Labour Day Bank holiday. The AUD/USD pair edged slightly lower during the trading session touching a low of 0.6732 before settling around the 0.6740 mark offshore. Macro releases had little impact with the release of AIG Construction Index, which showed a further contraction in September, the index dropped to 42.6, down from 44.6 the month prior. This sector has been contracting for the past 13 consecutive months, anything under 50 separates expansion form contraction. Looking ahead, the domestic docket sees the release of NAB Business Confidence and Business Conditions which are expected to remain soft. Markets will be closely watching the release of ANZ Job Advertisements with the labour market being a key concern for the RBA who is targeting a lower rate of employment. Adopting a technical viewpoint, the Aussie is currently trading at 0.6731, we see initial AUD/USD support at 0.6720 before 0.6700 on the downside. On the topside, first lines of resistance are seen at a level of 0.6750 followed by 0.6780.
Key MoversThe US Dollar Index which measures the strength of the Greenback against a basket of six major currencies closed the session higher, markets are on edge and risk aversion reared its head with the upcoming new round of trade talks between the US and China. EUR/USD is down at 1.0969 as a slump in German factory orders for the month of August has increased some concerns of a recession. German Factory Orders fell 0.6% which was twice as much as forecasted. Over in the UK, BRC Retail Sales reported a drop of 1.3% in sales in September over the same period last year which sets a new record low for that month. Several major retailers have reported that Brexit uncertainty has affected their customers with confidence low. GBP/USD currently trading at 1.2293.
- AUD/USD: 0.6680 - 0.6770 ▼
- GBP/AUD: 1.8040 - 1.8380 ▼
- AUD/NZD: 1.0670 - 1.0730 ▼
- AUD/EUR: 0.6110 - 0.6180 ▼
- AUD/CAD: 0.8840 - 0.9020 ▼