Aussie dollar trades above 63 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 US$0.6360 at time of writing. The AUDUSD pair initially fell overnight, following the Federal Reserve’s (Fed) monetary policy decision but later trimmed part of its losses as the US dollar lost ground after Fed Chairman, Jerome Powell’s press conference. The Fed left interest rates unchanged at 4.5%, reinforcing a cautious approach amid inflation and economic uncertainties. AUDJPY extended its decline on Wednesday, ahead of the Asian session, slipping toward 94.50, after a second consecutive day in the red. The retreat comes after the pair struggled to maintain momentum above recent highs, suggesting a cooling of bullish sentiment. Looking ahead today, all eyes will be on the unemployment rate decision. The jobless rate is expected to remain steady at 4.1%. Whilst 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 labour-market conditions.Key Movers
On Wednesday, the US Dollar Index (DXY), which tracks the performance of the US dollar (USD) against six major currencies, ticked up to 103.67. Officials at the US Federal Reserve cut their US economic growth forecasts and raised projections for price growth as they kept interest rates on hold. Policymakers at the Fed expect inflation to increase by an average rate of 2.7% this year, up from a previous estimate of 2.5%, according to projections released on Wednesday. They expect US gross domestic product (GDP) – a broad measure of economic health – to rise by 1.7% this year, down from an estimate of 2.1% in December. Officials also revised down their projections for GDP growth in 2026 and 2027, to 1.8%.Expected Ranges
- AUD/USD: 0.6250 - 0.6450 ▲
- AUD/EUR: 0.5700 - 0.5900 ▲
- GBP/AUD: 2.0350 - 2.0550 ▼
- AUD/NZD: 1.0800 - 1.1000 ▲
- AUD/CAD: 0.9000 - 0.9200 ▼