Aussie dollar trades above US$0.64
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Daily Currency Update
The Australian dollar is slightly stronger this morning when valued against the Greenback, trading at US$0.6427 at the time of writing. The AUD/USD pair is trading steadily around US$0.6400 as investors brace for key economic data from the United States (US) this week. The focus is on Nonfarm Payrolls (NFP) and GDP figures, which will provide insights into the strength of the US labour market and economic growth, potentially influencing the Federal Reserve’s (Fed) monetary policy decisions.A softening US-China trade narrative helped drive the ASX200 higher on Monday, for the third straight day of market gains. The benchmark ASX200 index jumped 28.90 points or 0.36 per cent to close the day at 7,997.10. The broader All Ordinaries also finished higher up 28.80 points or 0.35 per cent to 8,203.90.
The AUD/JPY traded close to the 91.30 area on Monday, showing limited movement ahead of the Asian session. The pair remains stuck mid-range after a session characterised by low volatility.
Key Movers
The US Dollar Index (DXY) remains under bearish pressure, hovering near 99.33, after slipping 0.25% on the day. While the Relative Strength Index (RSI) at 35.28 remains neutral, the Moving Average Convergence Divergence (MACD) issues a sell signal, confirming the underlying bearish tone.The USD/JPY pair faces heavy selling pressure, sliding to the 142.00 zone during Monday’s North American hours. Investor caution has resurfaced as broader trade optimism erodes, pushing demand toward the safe-haven Japanese yen. Japanese markets remained closed on Monday for Showa Day, yet attention remains on the upcoming BoJ meeting, where policymakers are expected to hold rates at 0.50%.
On the economic calendar front, a busy week is ahead. The data will likely help traders assess if the Federal Reserve (Fed) will deliver an interest-rate cut in its upcoming policy meeting on May 7. This week's main attention will be on Wednesday, with the first reading of the US Gross Domestic Product (GDP) for the first quarter. Next, on Friday, the US Employment report for April, which includes the all-important Nonfarm Payrolls number, is the main event to close off the week.
Expected Ranges
- AUD/USD: 0.6300 - 0.6500 ▼
- AUD/EUR: 0.5500 - 0.5700 ▼
- GBP/AUD: 2.0800 - 2.1000 ▲
- AUD/NZD: 1.0650 - 1.0850 ▲
- AUD/CAD: 0.8800 - 0.9000 ▼