Home Daily Commentaries Aussie dollar trades lower below 67 US cents 

Aussie dollar trades lower below 67 US cents 

Daily Currency Update

The Australian dollar is weaker this morning when valued against the Greenback, currently trading at US$0.6634 at time of writing. The AUDUSD pair declined on Wednesday, driven by intensified US dollar buying and concerns over China's stimulus measures. On Wednesday, the pair traded below the former low of US$0.6650. However, AUDJPY extends its gains for the third consecutive day, trading near 101.60 during European hours on Wednesday. The Japanese yen (JPY) is under heavy selling pressure due to growing concerns over political instability, which further clouds the outlook for the Bank of Japan's (BoJ) monetary policy. Traders may glean more from Bank of Japan Governor, Kazuo Ueda at the IMF-hosted Governor Talks session, scheduled later in the North American session. Looking ahead, today we will see the release of the local 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. The Reserve Bank of Australia (RBA) will also release an Annual Report.

Key Movers

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, climbs to near US$104.40. The outlook of the US dollar has strengthened further as the International Monetary Find (IMF) has upwardly revised US growth projections for the current and the next year. The IMF expects the US economy to end the 2024 and 2025 year with a Gross Domestic Product (GDP) growth of 2.8% and 2.2%, respectively. Gold price plunges from an all-time high of US$2,758 on Wednesday as US Treasury yields climbed, while the Greenback refreshes a two-month high, according to the DXY. At the time of writing, the XAUUSD trades at $2,716, down more than 1%. U.S. stocks fell Wednesday as Treasury yields continued to climb on concerns of a more shallow outlook for the US Federal Reserve's rate cut cycle. The Dow Jones Industrial Average fell 235 points, or 0.6%, the S&P 500 index fell 17 points, or 0.3%, and the NASDAQ Composite fell 88 points, or 0.5%. The economic data calendar is relatively quiet Wednesday, with existing home sales for September the main release. Focus is turning towards the U.S. presidential election, with investors also increasingly positioning ahead of the Nov. 5 polling day.

Expected Ranges

  • AUD/USD: 0.6500 - 0.6700 ▼
  • AUD/EUR: 0.6050 - 0.6250 ▼
  • GBP/AUD: 1.9300 - 1.9500 ▲
  • AUD/NZD: 1.0900 - 1.1100 ▲
  • AUD/CAD: 0.9050 - 0.9250 ▼

Written by

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market. He started his foreign exchange career with OFX more than a decade ago, as a private dealer catering to individual clients. He later transitioned to the corporate sector, assuming the position of Corporate Senior Relationship Manager. What truly excites Brett is the opportunity to engage with people, supporting their business growth and sharing in their successes.