Aussie dollar trades below 64 US cents
Daily Currency Update
The Australian dollar is weaker this morning when valued against the Greenback trading below 64 US cents. The Australian Dollar reversed its course against the US Dollar after registering gains during the Asian session. Late in the North American session, losing 0.12% after reaching a daily high of 0.6473. In July 2023 Michele Bullock was appointed as governor of the Reserve Bank of Australia (RBA), commencing today in her new role. She will be the ninth governor and the first woman to hold the position. In China, retail sales and industrial production grew faster than expected in August. Industrial production grew 4.5% y/y in August, while retail sales, increase 4.6%. The economy has struggled to rebound amid a property slowdown, declining exports and low consumer demand. The Yuan advanced immediately following the data, but subsequently faded and ended with little change.Looking ahead this week on the data front on Tuesday the Reserve Bank of Australia (RBA) will release the Monetary Policy Meeting Minutes. It's a detailed record of the RBA Reserve Bank Board's most recent meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates. On Wednesday the Melbourne Institute will release the Indexes of Economic Activity. This index is designed to predict the direction of the economy, but it tends to have a muted impact because most of the indicators used in the calculation were released previously. Finally, on Friday we will see the release of both Manufacturing and Services Purchasing Managers' Indexes (PMI).
Key Movers
On Friday the Pound Sterling continued to weaken against the US dollar for the second consecutive day after a tranche of positive US economic data bolstered the Greenback. Hence, the GBP/USD is set to finish the week with losses, exchanging hands at 1.2397, below its 200-day Moving Average (DMA). Sentiment shifted sour, bolstering appetite for safe-haven assets, notably the US Dollar. Data revealed on Friday showed Americans’ inflation expectations were lowered, as demonstrated by the University of Michigan (UoM) poll. Inflation is expected to rise to 3.1% below August’s reading for one year, and it is projected at 2.7% for a ten-year period. Despite people’s high spirits, consumer sentiment dropped to 67.7, below forecasts of 69.1. The US Federal Reserve earlier revealed that Industrial Production expanded 0.4% MoM, below July’s 1% but above the consensus forecasts. Further data released by the New York Fed showed its Empire State Manufacturing Index for September improved to 1.9 from a -21 figure in August, above forecasts of a -10 drop.Expected Ranges
- AUD/USD: 0.6320 - 0.6520 ▼
- AUD/EUR: 0.5910 - 0.6110 ▼
- GBP/AUD: 1.9040 - 1.9240 ▲
- AUD/NZD: 1.0750 - 1.0950 ▲
- AUD/CAD: 0.8575 - 0.8755 ▼