Home Daily Commentaries Aussie dollar finds support as attentions shift to US employment data

Aussie dollar finds support as attentions shift to US employment data

Matt Richardson
Written by
Matt Richardson

Matt Richardson

OFXpert

Matt provides expertise in currency risk management to his clients, drawing from his 14 years of experience in foreign exchange.

| Friday 6 December, 2024

Daily Currency Update

The Australian dollar edged upward through trade on Thursday, having found support after marking fresh 4-month lows through trade on Wednesday. After crashing to US$0.64 after weaker than anticipated GDP numbers on Wednesday, the AUD tracked sideways through much of the domestic session on Thursday, bouncing between U$0.6420 and US$0.6440. Having bounced back above key technical supports at US$0.6431, the AUD traded higher overnight, pushing back above US$0.6450 and opens this morning at US$0.6453.

Our attentions turn now to US non-farm payrolls as a key marker ahead of the December FOMC policy meeting. Fed Chair Jerome Powell hit the wires on Thursday and suggested the economy was doing better than expected. A robust employment print could support a pause in rate reductions through early 2025 and add near-term support to US treasury yields and the dollar.

Key Movers

The USD edged lower through Thursday, weaker against G10 pairs amid softer employment data and a flattening in yields and equities. The euro was the day’s surprise out performer, jumping 0.6% and cruising back through 1.0550 to mark highs just short of 1.0585. Sentiment surrounding French political uncertainty improved, while French and Germany 10 year spreads narrowed. Comments from National Rally Leader Marine Le Pen helped calm concerns as she stated “it is possible to deliver a budget within a few weeks”. While Prime Minister Barnier lost the vote of no confidence yesterday the result was largely expected and President Macron has already confirmed he will announce a new Prime Minister in the coming days and that new government will draft a new budget bill as soon as possible.

Our attentions turn now to German trade balance and industrial production data, while US consumer spending data and non-farm payrolls dominate the macroeconomic ticket leading into the weekly close.

Expected Ranges

  • AUD/USD: 0.6350 - 0.6550 ▲
  • AUD/EUR: 0.6020 - 0.6150 ▼
  • GBP/AUD: 1.9600 - 1.9900 ▲
  • AUD/NZD: 1.0920 - 1.1020 ▼
  • AUD/CAD: 0.9000 - 0.9100 ▼

Written by

Matt Richardson

OFXpert

As a Senior Corporate Client Manager, Matt provides expertise in currency risk management to his clients, drawing from his 14 years of experience in foreign exchange. Matt has clients who he has been working with for over a decade, a testament to his knowledge and dedication in the field. Matt is also a regular contributor on Ausbiz, offering clear and precise updates on currency market trends, showcasing his ability to interpret complex financial data into actionable insights.