AUD underperforms, unable to break narrowing ranges
Written by
Daily Currency Update
The Australian dollar offered little to excite investors through trade on Wednesday, remaining well and truly entrenched within its recent narrow trading handle. With little of note on the domestic macroeconomic ticket the AUD tracked sideways for much of the local session bouncing between US$0.6425 and US$0.6450 before edging lower in overnight trade. Extended US dollar support amid a consolidation across equity indices and an upswing in global rates pushed the AUD toward session lows at US$0.6410. With the USD on the front foot the AUD held firm against all key crosses outside the NZD. The AUD fell back below 1.08 against the NZD as markets adjusted positions and expectations in response to the RBNZ’s new neutral bias.Our attention now turns to middling macro data headlined by US GDP estimates, jobless claims and pending home sales while trade and geopolitical headlines continue to drive the underlying risk narrative.
Key Movers
News flow and headline macro data were light Wednesday allowing US equities to consolidate the weeks earlier gains while keeping a lid on price action among major currencies. The Japanese yen was the days worst performer as investors reacted to a lacklustre Government bond auction. The 40 year bond issuance was met with muted demand as ultra long dated bonds face mounting pressure. The yen gave up 0.6% to the USD allowing the dollar to move back above 145 while the euro edged lower falling back below 1.13 and the Pound gave up 1.35 drifting toward 1.3475.With little of note on today’s macro ticket our attentions remain with tariff and geopolitical headlines for direction leading into Friday.
Expected Ranges
- AUD/USD: 0.6380 - 0.6550 ▼
- AUD/EUR: 0.5650 - 0.5750 ▼
- GBP/AUD: 2.0800 - 2.1100 ▲
- AUD/NZD: 1.0720 - 1.0850 ▼
- AUD/CAD: 0.8850 - 0.8950 ▼