Aussie dollar continues to trade below 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$0.6299 at time of writing. The Australian Dollar (AUD) Index hovered near recent levels on Wednesday as market sentiment shifted in response to the latest inflation data. According to the Australian Bureau of Statistics, Australia’s Consumer Price Index (CPI) increased by 2.4% in February, a slight decline from 2.5% the previous month, remaining within the Reserve Bank's target range. Annual CPI inflation was slightly lower in February, after holding steady at 2.5% for the previous two months. The data was released just days before the RBA’s upcoming interest rate decision on April 1, which will be the first made under its newly implemented dual-board structure. The AUD could retest the US$0.6325 level; the major resistance at US$0.6355 is unlikely to come into view. In the longer run, AUD appears range-bound for now, likely between US$0.6240 and US$0.6355.Key Movers
The US Dollar Index (DXY), which measures the value of the US dollar against a basket of currencies, is holding near the US$104.30 zone during Wednesday’s session. A better-than-expected print in February’s Durable Goods Orders, coupled with hawkish rhetoric from Fed officials, is helping the USD to edge higher. However, momentum indicators remain conflicted, hinting at a still fragile upside. The Dow Jones Industrial Average (DJIA) fell on Wednesday, backsliding back below the 42,500 level and snapping a recent winning run. Gold price flat-lined late in the North American session, capped by the recovery of the DXY. At the time of writing, XAU USD trades at $3,019, virtually unchanged.Expected Ranges
- AUD/USD: 6200 - 0.6400 ▲
- AUD/EUR: 0.5750 - 0.5950 ▲
- GBP/AUD: 2.0350 - 2.0550 ▼
- AUD/NZD: 1.0900 - 1.1100 ▼
- AUD/CAD: 0.8900 - 0.9100 ▲