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Aussie dollar extending its gains above 0.70 U.S cents

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AUD – Australian Dollar

The Australian dollar is stronger this morning when valued against the Greenback on the back of the US dollar unwinding some of its gains of 2019 extending its gains above 0.70c, the highest since late July 2019. Moreover, the Aussie dollar is benefiting from an improvement in the Chinese economy. The official Purchasing Managers’ Index for the manufacturing sector has advanced to 50.2 points, with encouraging components. China is Australia’s No. 1 trade partner. Australia’s Dollar has risen 1.3% against the U.S. Dollar this last week and by 3.67% in December.

On the release front there are no scheduled releases today. From a technical perspective, the AUD/USD pair is currently trading at 0.7014. We continue to expect support to hold on moves approaching 0.6950 while now any upward push will likely meet resistance around 0.7035.

Key Movers

The Pound Sterling hit a two-week high against the U.S dollar, a daily high of 1.3284, after UK PM Johnson’s victory on the general election, and the 1.2904 low hit after Johnson decided to limit the transition period to December 2020. The possibility of a “no-deal” Brexit at the end of 2020 is still weighing on the pound.

On the release front today the UK will see the release this Thursday of the final Markit Manufacturing PMI for December, foreseen at 47.6 vs. the previous estimate of 47.4. From a technical perspective, the GBP/USD pair is currently trading at 1.3252. We continue to expect support to hold on moves approaching 1.3230 while now any upward push will likely meet resistance around 1.3285.

Expected Ranges

AUD/USD: 0.6900 – 0.7100 ▲

GBP/AUD: 1.8800 – 1.9000 ▼

AUD/NZD: 1.0350 – 1.0550 ▼

AUD/EUR: 0.6200 – 0.6300 ▲

AUD/CAD: 0.9000 – 0.9200 ▲


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