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Aussie dollar fails to consolidate above 0.6900 US cents

AUD - Australian Dollar

The Australian dollar is currently trading this morning around the 0.6900 level after falling at the beginning of the week to a fresh weekly low of 0.6861. Yesterday the Aussie fell against the US dollar fell amid doubts about the US-China trade deal after the leaders of both economies delayed their next meeting to December. However overnight we saw Further optimism on an imminent US-China trade deal as comments from China’s side that China and the US had agreed in principle to remove some of the punitive tariffs as part of a trade deal. On the release front yesterday the September Trade Balance posted a surplus of 7180M, as exports rose by 3.0% in the month, while imports also increased by 3.0%.

Looking ahead today and we will see the release of the Reserve bank of Australia’s statement on monetary policy which will contain new forecasts consistent with its on-hold policy decision earlier in the week. From a technical perspective, the AUD/USD pair is currently trading at 0.6901. We continue to expect support to hold on moves approaching 0.6885 while now any upward push will likely meet resistance around 0.6930.

Key Movers

Overnight we saw the Greenback climb to more than a five-month high against the safe-haven Japanese Yen as market expectations grew that the United States and China are inching closer to a trade deal. It was reported the two countries have agreed to roll back tariffs on each other’s’ goods as part of the first phase of a trade deal offering a new sign of progress despite the two sides’ ongoing divisions over trade. On the back of this announcement risk appetite sent the USD/JPY pair to 109.48 its highest since late May, consolidating gains above 109.30. The Japanese macroeconomic calendar will be quite busy this Friday, as the country will release September Labour Cash Earnings and Overall Household Spending. From a technical perspective, the USD/JPY pair is currently trading at 109.22. We continue to expect support to hold on moves approaching 109.30 while now any upward push will likely meet resistance around 109.60.

Expected Ranges

AUD/USD: 0.6800 - 0.7000 ▲

GBP/AUD: 1.8450 - 1.8650 ▼

AUD/NZD: 1.0750 - 1.0950 ▲

AUD/EUR: 0.6150 - 0.6350 ▲

AUD/CAD: 0.9000 - 0.9200 ▲