Australian dollar remains range-bound

OFX Daily Market News

Posted by OFX

AUD – Australian Dollar

The US Thanksgiving holiday has meant markets have barely moved overnight leaving the Australian dollar little changed against the Greenback. Yesterday we saw the Aussie trade in a tight trading range between 0.6759 – 0.6777. On the back of risk aversion the Aussie dollar hit a daily low of 0.6759 as US President Trump’s decision to sign the bill, voted by almost all members of the US House and Senate, supporting pro democracy protesters in Hong Kong by putting the city’s special trading status under US law under annual review.

On the data front yesterday Q3 Private Capital Expenditure decreased by 0.2% more than the 0.1% decline forecasted. Looking ahead today and we will see the release of October HIA New Home Sales and Private Sector Credit for the same month. From a technical perspective, the AUD/USD pair is currently trading at 0.6767. We continue to expect support to hold on moves approaching 0.6730 while now any upward push will likely meet resistance around 0.6800.

Key Movers

The Pound sterling overnight briefly touched near seven-month highs against the euro on a poll predicting a comfortable election victory for the ruling Conservatives. UK Prime Minister Boris Johnson is on course to win a majority of 68 in parliament, according to a model from pollsters YouGov that accurately predicted former prime minister Theresa May’s loss of her majority in a 2017 election. However, a hung parliament still not off the table. From a technical perspective, the pound rose to a one-week high of $1.2953 against the Greenback, then slipped, ending 0.2% weaker on the day to $1.2907. On the release front yesterday in the UK November Nationwide Housing Price Index, which was up by 0.5% MoM and by 0.8% YoY, beating the market’s expectations. This Friday, the UK will release the GFK Consumer Confidence Survey, seen at -14 in November, unchanged when compared to the previous month. Looking ahead today and we will see the release of both October Mortgage Approvals and Money data.

GBP/AUD: 1.9000 – 1.9200 ▼

AUD/NZD: 1.0450 – 1.0650 ▼

AUD/EUR: 0.6050 – 0.6250 ▼

AUD/CAD: 0.8900 – 0.9100 ▼


Posted by OFX

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