Aussie dollar continues to trades below US$0.66
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Daily Currency Update
The Australian dollar is slightly weaker this morning when valued against the Greenback currently trading at US$0.6558 at the time of writing. Today, all eyes are on the release of the Q3 inflation figures. The headline figure could be the lowest in three and a half years. This will be the prelude to next week's meeting of the Reserve Bank of Australia (RBA). And what the markets will see tomorrow is likely to please the central bankers. While technically within the Reserve Bank’s 2% to 3% target range, borrowers hanging out for an interest cut should restrain their hopes. Still, the trimmed mean measure of most interest to the RBA should be 3.4% to 3.5%, the commercial bank economists say. If their predictions are accurate, underlying inflation will be at the lowest level since the end of 2021 – almost three years ago. Most analysts expect an annual inflation rate of 2.9% in the third quarter. Looking forward to the rest of the week and on Thursday we will see the release of the monthly retail sales and building approvals. Finally, on Friday we will see the release of the monthly Producer Price Index (PPI) which is another leading indicator of consumer inflation - when producers charge more for goods and services the higher costs are usually passed on to the consumer.Key Movers
The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, extended gains on Tuesday, hitting a three-month high at 104.55. Despite a slight dip in September JOLTS Job Openings, the US labor market remains robust, as indicated by steady hiring and separation rates. US JOLTS Job Openings fell to 7.44 million in September from a revised-down of 7.861 million in August and below estimates of 7.99 million, according to data from the US Bureau of Labor Statistics (BLS). Gold breaks out of the top of its mini range, which stretches from a low of $2,708 to an all-time high of $2,758. US stocks opened Tuesday's session lower with the Dow Jones Industrial Average (DJI) leading losses as it dipped 0.4%. The tech-heavy Nasdaq Composite (IXIC) and S&P 500 (GSPC) are looking ahead to this week's Big Tech earnings as Alphabet (GOOG, GOOGL) is the next Magnificent Seven stock to report results after the market close. The key economic data releases, including ISM Manufacturing PMI and Nonfarm Payrolls (NFP), are expected this week. The outcome of these releases will be crucial in determining the index's trajectory. The USD remains supported by a resilient economy, but headwinds include Fed caution on inflation and market expectations for rate cuts.Expected Ranges
- AUD/USD: 0.6450 - 0.6650 ▼
- AUD/EUR: 0.5950 - 0.6150 ▼
- GBP/AUD: 1.9700 - 1.9900 ▲
- AUD/NZD: 1.0850 - 1.1050 ▼
- AUD/CAD: 0.9000 - 0.9200 ▼