Aussie dollar trades above US$0.64
Written by
Daily Currency Update
The Australian dollar is stronger this morning when valued against the Greenback, trading at US$0.6414 at the time of writing. The Australian dollar (AUD) regained ground on Monday, lifting toward the US$0.6400 area during the American session, as improving risk sentiment and a broadly weaker US dollar.The U.S. dollar continued its slide, falling to its lowest level since 2022, as global investors retreat from U.S. assets in the face of tension between President Donald Trump and the Federal Reserve. The dollar has fallen sharply since Trump’s inauguration in January. The April 2 rollout of the global reciprocal tariffs seemed to spur one round of selling.
Looking ahead this week on the data front, on Wednesday, we will see the release of the Purchasing Managers' Index (PMI) a survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. It's a leading indicator of economic health - businesses react quickly to market conditions, and their purchasing managers hold the most current and relevant insight into the company's view of the economy.
Key Movers
The US Dollar Index (DXY) trades deep in the red on Monday, sliding toward the 98.50 region, marking a new three-year low. US stock markets fell again on Monday as Donald Trump continued attacks against the Federal Reserve chair, Jerome Powell, whom the US president called “a major loser” for not lowering interest rates.In recent days, Trump has amped up attacks against the Fed chair, pushing Powell to lower interest rates to offset the inflationary impacts of the new tariffs. Trump is pressuring the Fed to cut rates, likely to appease the stock market, which plummeted after he announced his latest slate of tariffs. Wall Street isn’t taking the bait and appears to be reacting in opposition to Trump’s attacks against Powell and the independence of the US central bank.
The Dow ended the day down 2.5%, while the tech-heavy Nasdaq Composite fell over 2.5% down, and the S&P 500 fell 2.4%. Former tech stocks favourites, including Tesla and Nvidia, lost ground, while the value of the dollar fell to multi-year lows against most major currencies.
Expected Ranges
- AUD/USD: 0.6300 - 0.6500 ▲
- AUD/EUR: 0.5450 - 0.5650 ▲
- GBP/AUD: 2.0750 - 2.0950 ▼
- AUD/NZD: 1.0600 - 1.0800 ▼
- AUD/CAD: 0.8800 - 0.9000 ▲