AUD – Australian dollar
The Australian dollar is stronger this morning when valued against the Greenback currently trading at US$0.6890 at the time of writing. The AUD/USD pair rallied to a three-month high. The Aussie dollar gained ground after China’s massive stimulus boost to revive household spending, real estate demand, and economic growth. The Reserve Bank of Australia (RBA) held rates steady and maintained a hawkish posture. The Reserve Bank has held the cash rate at 4.35 per cent following its board meeting on Tuesday, flagging that inflation is “still too high”. The seventh consecutive hold was widely tipped by economists and investors, which means homeowners will be slugged with the 13-year high cash rate until at least November 5, when the board is slated to meet next. In a statement, the RBA acknowledged inflation had “fallen substantially” but it was still beyond the “midpoint” of the board’s target band of 2 to 3 per cent. For now, the hawkish RBA is supporting the Australian dollar.
Key Movers
The US Dollar Index (DXY), which measures the value of the USD against a basket of six currencies, posted some losses on Tuesday after the release of the Conference Board’s Consumer Confidence data. US Consumer Confidence unexpectedly plunged in September, falling below expectations to 98.7. The Conference Board revealed that Consumer Confidence declined in September, hitting its lowest level since August 2021, due to growing concerns about the labor market and the overall economic outlook. Gold prices hit a new all-time high (ATH) during Tuesday’s North American session. The XAU/USD trades at $2,651 after reaching an ATH of $2,655. All three of the major indexes closed higher on Tuesday, with the Dow Jones Industrial Average and S&P 500 both ending the day at record highs. Going forward, investors will focus on commentaries from Fed officials and the United States (US) Personal Consumption Expenditure Price Index (PCE) for August, which will be published on Friday.
Expected Ranges
AUD/USD: 0.6800 – 0.7000 ▲
AUD/EUR: 0.6050 – 0.6250 ▲
GBP/AUD: 1.9350 – 1.9550 ▲
AUD/NZD: 1.0750 – 1.0950 ▼
AUD/CAD: 0.9150 – 0.9350 ▼