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Aussie dollar opens slightly stronger against the greenback

Tuesday 16 November, 2021

Daily Currency Update

AUD - Australian Dollar

The Australian dollar opened the week stronger than the greenback trading as high as 0.7370 and holding on to most of their intraday gains. The AUD/USD pair got a boost from Chinese data, as the country published stronger than expected data results. Chinese Industrial Production was up 3.5% YoY in October, while retail sales increased by 4.9% in the same period, improving from September figures and above the market’s forecasts. Looking ahead today and all eyes will be on the Reserve Bank of Australia which will publish the minutes of its latest meeting, while Governor Philip Lowe will offer a speech. Later in the week, Australia will unveil the Q3 Wage Price Index, foreseen at 0.5% in the three months to September. Australian wage growth stood at 0.4% in the three months to June, down from 0.6% in the previous quarter. From a technical perspective, the AUD/USD pair is currently trading at 0.7347. We continue to expect support to hold on moves approaching 0.7300 while now any upward push will likely meet resistance around 0.7415.

Key Movers

Overnight in the US, we saw the release of the upbeat NY Empire State Manufacturing Index, which improved to 30.9 in November from 19.8 previously. However, US government bond yields jumped north, pushing equities lower. The yield on the 10-year US Treasury note peaked at 1.62%, while that on the 30-year note reached a two-week high. Looking ahead and on Tuesday, the EU will publish the second estimate of its Q3 Gross Domestic Product, foreseen unchanged at 2.2% quarter on quarter. The US will release retail sales for the month of October which is expected to be up 0.7% MoM. An upbeat reading may push the greenback further higher.

Expected Ranges

  • AUD/USD: 0.7250 - 0.7450 ▲
  • AUD/EUR: 0.6350 - 0.6550 ▲
  • GBP/AUD: 1.8150 - 1.8350 ▲
  • AUD/NZD: 1.0300 - 1.0500 ▲
  • AUD/CAD: 0.9100 - 0.9300 ▲