Aussie dollar retreats below 69 US cents

OFX Daily Market News

Posted by OFX

AUD – Australian Dollar

The Australian dollar is weaker this morning when valued against the Greenback, falling to an overnight low of 0.6858. Australian data released at the beginning of the day didn’t help, as the ANZ Job Advertisements fell by 6.7% in December after dropping 1.8% in November. It’s been quite the climb down in the aussie after temporarily breaching above 0.7000 against the dollar to end 2019. Since then, price has retreated and now looks on course for a fifth straight day of declines as markets increase bets on the RBA easing next month.

On the release front today will release November Building Permits, seen up by 2.0% MoM following an 8.1% decline in October. From a technical perspective, the AUD/USD pair is currently trading at 0.6870. We continue to expect support to hold on moves approaching 0.6840 while now any upward push will likely meet resistance around 0.6900.

Key Movers

The Greenback was the biggest mover overnight posting gains against most major rivals. The dollar strengthened on the back of better-than-expected U.S. non-manufacturing sector and factory orders data also lifted the dollar. The ISM Non-Manufacturing PMI improved to 55 in December from 53.9 in November, beating the market’s expectation of 54.5. Factory Orders in the country decreased by less than anticipated, down by 0.7% in November. Rest of the week is fairly quiet with the only relevant figure will be the ADP survey on private jobs’ creation ahead of the Nonfarm Payroll report on Friday.

Expected Ranges

AUD/USD: 0.6750 – 0.6950 ▼

GBP/AUD: 1.9000 – 1.9200 ▲

AUD/NZD: 1.0250 – 1.0450 ▼

AUD/EUR: 0.6050 – 0.6250 ▼

AUD/CAD: 0.8850 – 0.9050 ▼


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