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AUD dips after USD strength from FOMC meeting

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AUD – Australian Dollar

The AUD fell after a slight uptick from a one day high of 0.6963, to open at 0.6936 against the USD this morning. Early on Saturday morning, FOMC meeting notes released had Fed officials holding rates, downplaying concerns of economic uncertainty.

Looking ahead, we can expect major movement for the AUD with the release of the ABS Building Approvals data on Wednesday morning. Showing the change in the number of new building approvals issued, a figure higher than it’s forecasted rate of 2.1% indicates expansion in the economy.

Key Movers

A risk-off approach is expected following the geopolitical tension caused over the weekend, with news that the US had killed a top Iranian general in an airstrike in Baghdad causing oil prices to soar. The US manufacturing PMI data also hit its lowest level in over a decade, indicating that global growth remains under pressure.

We can hope to see some positive news with further US releases of non-manufacturing PMI data and ADP non-farm employment on Wednesday and Thursday respectively.

It is a quiet week overall for macroeconomic news with no other major data expected to be released until Friday morning in Canada, when the Bank of Canada Govenor Poloz is scheduled to speak. Volatility is experienced during his speeches as trades attempt to decipher interest rate clues.

Expected Ranges

AUD/CAD: 0.8855 – 0.9085 ▼

AUD/EUR: 0.6150 – 0.6290 ▲

GBP/AUD: 1.8535 – 1.9050 ▼

AUD/NZD: 1.0340 – 1.0490 ▼

AUD/USD: 0.6860 – 0.7120 ▲


Posted by OFX

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