Home Daily Commentaries AUD underperforms, unable to break narrowing ranges

AUD underperforms, unable to break narrowing ranges

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.

| Thursday 29 May, 2025

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 ▼

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.