Aussie dollar trades below 64 US cents
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Daily Currency Update
The Australian dollar is weaker this morning when valued against the Greenback currently trading at 0.6369 at time of writing. The AUD/USD pair has shown resilience despite a minor rebound in the US Dollar Index, which bounced slightly from a three-year low as markets adjust to profit-taking after Monday’s steep USD decline. Investors remain cautious as the US-China trade dispute shows no signs of easing. Tensions escalated after the White House ordered a probe into potential tariffs on all mineral imports, prompting fears of supply chain disruptions. China responded with new export controls on key rare earth materials. Immediate support is seen at 0.6336, followed by 0.6332 and 0.6329. On the upside, resistance is expected around 0.6413, then 0.6423, with stronger pressure awaiting near 0.6474. Looking ahead today and we will see the release of the Purchasing Managers' Index (PMI) a survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the company's view of the economy.Key Movers
The US Dollar Index (DXY) struggled to extend its bounce on Tuesday, hovering near the 98.50 zone after recovering slightly from the three-year trough of 98.01. Trump’s criticism, calling Powell “a major loser” and threatening to remove him for not cutting rates ,has alarmed investors and dragged on the Greenback’s long-term credibility. Overnight the tech-heavy Nasdaq Composite tumbled 2.55 percent, dragging the index down nearly 18 percent from its position at the start of the year. US government bonds also fell as investors sold off the traditional safe-haven assets, with the yield on 10-year Treasury notes rising above 4.4 percent. Trump has repeatedly threatened to replace Powell, saying last week that his termination “cannot come fast enough”. On the data front yesterday The Richmond Federal Reserve's manufacturing index plummeted to -13 in April, down from March's -4 reading and far worse than analysts' estimates of -6. April's reading reflected the sharpest decline in factory activity since November 2024, with the shipments index falling to -17 from -7, the steepest decline in seven months, and new orders dropping from 5 to -17. Expectations on future shipments sank to -20, in sharp contrast to the prior month's reading of 7. Elsewhere, the backlog of orders sank to -24 from -1 as manufacturers depleted pending work to limit a sharper decline in shipments.Expected Ranges
- AUD/USD: 0.6250 - 0.6450 ▼
- AUD/EUR: 0.5500 - 0.5700 ▼
- GBP/AUD: 2.0700 - 2.0900 ▲
- AUD/NZD: 1.0550 - 1.0750 ▼
- AUD/CAD: 0.8700 - 0.8900 ▲