All quiet on the major front
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Daily Currency Update
There has been very little price action through the last 24 hours with newsflow light and no major macroeconomic markers on hand to drive direction. Encouragingly the AUD has held onto gains above US$0.65 closing the overnight session above the key psychological handle for the 2nd consecutive day. The AUD continues to mark higher lows in what has been a slow and gradual upswing. Our focus through Tuesday was directed squarely at US/China trade talks but with no headline announcements issued at time of writing ranges have been well contained. The AUD has traded between US$0.6495 and US$0.6530. Having broken above US$0.65 the next point of resistance is the 2025 high and levels above US$0.6530. The AUD has made a number of attempts at this level through the last 48 hours only to be rebuffed. A consolidated break above this level could be the signal buyers are waiting for, propelling the AUD into a higher trading handle.Key Movers
Moves across majors were largely muted through trade on Tuesday with just one notable underperformer. The British pound fell following a softer than expected labour market update. Indicators showed payrolls fell by more than 100,000 in May with the retail and hospitality sectors accounting for more than half of jobs lost. With growth in wages stalling the market moved to price in two further rate cuts before years end forcing UK yields lower, dragging the GBP with them. The GBP has fallen back below 1.35, marking intraday lows at 1.3464.Our attention today remains with US/China trade talks wile US CPI inflation data headlines the macroeconomic ticket.
Expected Ranges
- AUD/USD: 0.6420 - 0.6550 ▲
- AUD/EUR: 0.5650 - 0.5730 ▲
- GBP/AUD: 2.0700 - 2.0900 ▼
- AUD/NZD: 1.0750 - 1.0830 ▲
- AUD/CAD: 0.8880 - 0.8980 ▼