Home Daily Commentaries Aussie dollar continues to trade below US$0.62

Aussie dollar continues to trade below US$0.62

Brett Ottawa
Written by
Brett Ottawa

Brett Ottawa

OFXpert

Brett brings a wealth of experience, boasting more than 15 years in the foreign exchange market.

| Monday 3 March, 2025

Daily Currency Update

The Australian dollar is weaker this morning when valued against the Greenback currently trading at 0.6187 at time of writing. The AUD/USD pair posts a fresh three-week low in Friday’s trading session after extending its losing streak for the sixth straight day. Key to the weakness this week was the release of inflation data showing price pressures in the economy seem to be contained. The Australian dollar sell-off suggests that while we may be slowly digging our way out of the cost-of-living crisis, global economic storm clouds are gathering. The Australian dollar sell-off suggests that while we may be slowly digging our way out of the cost-of-living crisis, global economic storm clouds are gathering. Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser reiterates optimism for inflation improvements but stresses caution amid persistently tight labor-market conditions and uncertain price trends. On the data front, last week Australian Private Capital Expenditure data unexpectedly shrank by 0.2% quarter-on-quarter in Q4 2024, missing a 0.8% forecast, highlighting weaker investment activity and undermining confidence in the Australian economy. Looking ahead today and we will see the release of the monthly ANZ Job Advertisements. On Tuesday we will see the release of the RBA Monetary Policy Meeting Minutes and Monthly Retail Sales figures.

Key Movers

The US dollar Index (DXY), which measures the value of the US dollar against a basket of six major currencies, remains firm above 107.00 on Friday after January’s Personal Consumption Expenditures (PCE) inflation data came in line with forecasts, easing concerns over unexpected inflation spikes. The US Core Personal Consumption Expenditures Price Index, considered the Federal Reserve’s (Fed) key inflation measure, rose by 0.3% in January (month-over-month), matching expectations, as Fed policymakers weigh the implications of ongoing trade disputes. President Trump’s new 10% tariff threat on Chinese goods compounds existing duties, fuelling fears of further retaliation. Tariffs for Mexico and Canadian goods are set to take place as soon as next week. Gold extended its losses on Friday, down more than 1% and over 3% in the week. The XAU/USD trades at $2,845 after reaching a daily peak of $2,885. On Wall Street the S&P 500 climbed 1.59% to end the session at 5,954.50 points. The Nasdaq gained 1.63% to 18,847.28 points, while the Dow Jones Industrial Average rose 1.39% to 43,840.91 points.

Expected Ranges

  • AUD/USD: 0.6100 - 0.6300 ▼
  • AUD/EUR: 0.5850 - 0.6050 ▼
  • GBP/AUD: 2.000 - 2.0200 ▲
  • AUD/NZD: 1.0900 - 1.1100 ▲
  • AUD/CAD: 0.8900 - 0.9100 ▼

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.