Daily Currency Update

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Australian dollar remains rangebound

AUD - Australian Dollar

It was another quiet day for the Australian Dollar, remaining rangebound as little domestic data filtered through during the Asian session in trading yesterday. Opening the morning at 0.6856 against the greenback, initial dips were seen down to 0.6835 as risk appetite waned on continued uncertainty over Brexit extensions and deadlines.

The CB Leading index which measures a number of leading economic indicators showed an increase of 0.2% for the month of August, potentially boosted by recent interest rate cuts as the RBA looks to stimulate the economy by way of monetary policy.

On the agenda this morning is the release of Flash Manufacturing and Service PMI figures as the Australian Dollar opens this morning square at 0.6853. We expect support levels to hold on moves approaching 68 US cents, while any upward push will likely meet strong resistance at September highs of 0.6890.

Key Movers

Volatility is expected to remain heightened for the Great British Pound over the coming days with the European Union expected to approve Boris Johnson’s further Brexit extension requests by Friday. With Parliament rejecting the withdrawal agreement before October 31st cable dropped to overnight lows of 1.2820, Recovering to 1.2905 on open this morning, global markets await the EU’s decision to grant a 3-month flexible extension into 2020.

Elsewhere the US Dollar index was quiet, dipping slightly to 97.45 as house prices in the United States rose by 0.2% for the month of August, albeit missing market expectations of 0.4%. The ECB sets their main refinancing rate this evening and is expected to remain on hold in what will be Mario Draghi’s last ever policy meeting.

Expected Ranges

AUD/USD: 0.6800 - 0.6890 ▼

GBP/AUD: 1.8600 - 1.9100 ▲

AUD/NZD: 1.0600 - 1.0700 ▼

AUD/EUR: 0.6100 - 0.6180 ▼

AUD/CAD: 0.8900 - 0.9000 ▼