AUD closing in on US$0.66 as USD faces continued pressures
Daily Currency Update
Despite testing a new 2025 high the AUD has shown little net movement through the last 24 hours tracking within a narrow range. With the USD on the back foot amid rising concern for the future of US debt and the budget deficit the AUD touched US$0.6590. It was, however, unable to extend toward and through US$0.66 as the USD found late support following a stronger than expected US JOLTS jobs report. The dollar rebounded, forcing the AUD back toward US$0.6560. The AUD opens this morning at US$0.6575.Our focus now turns to domestic retail sales. We expect consumer spending will extend its subdued start to the year, declining through May adding to calls for the RBA to continue lowering rates. Outside domestic retail sales we look at Euro Area unemployment date, US ADP payroll data and the ECB Sintra forum on monetary policy.
Key Movers
Moves among major currencies were small Tuesday as conflicting forces worked against each other and ensured ranges remained in check. The USD dropped to a new multi year low after President Trump’s Big Beautiful Bill passed the Senate and fears surrounding US debt and the budget deficit escalated. As we noted yesterday the Congressional Budget Office estimates the Bill will add north $3 trillion to the deficit over the next 10 years. A rebound across front end US treasury yields helped lift the dollar off the daily low. It recovered much of its losses and sits little changed on the day. In other news the euro is flat after euro-area inflation printed flat while the GBP held a narrow range through the day and the yen showed little net movement.Our attentions remain with trade and trade headlines while ADP payroll numbers dominate the macro ticket ahead of Friday’s non-farm payroll print.
Expected Ranges
- AUD/USD: 0.6520 - 0.6620 ▼
- AUD/EUR: 0.5500 - 0.5600 ▼
- GBP/AUD: 2.0700 - 2.1100 ▲
- AUD/NZD: 1.0750 - 1.0850 ▼
- AUD/CAD: 0.8920 - 0.9020 ▲