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Australian Dollar meets resistance at 69 US cents

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AUD – Australian Dollar

The Australian Dollar closed in positive fashion on Friday after trading between a range of 0.6838 and 0.6906 against the greenback last week. As traders wind down their positions in the lead up to the festive season, The AUD/USD tried valiantly to push through the 69 US cent handle on Friday evening.

RBA Policy meeting minutes released on Wednesday caused a dip in the local currency after the statement showed a potential push to further stimulus at the next RBA rate meeting in February to benchmark lows of 0.5%. This was somewhat abated following an upbeat job print on Thursday as 39,900 jobs were added to the labour force in November.

The Australian dollar opens this morning at 0.6897 ahead of the release of Private Sector Credit due at 11:30am AEST. We expect support levels to hold on moves approaching 0.6840, while any upward push will likely meet resistance at 0.6940.

Key Movers

It was a rollercoaster ride for the Great British Pound last week as it suffered post-election blues and closed below 1.3000 on Friday evening. Unable to sustain its run higher following Prime Minister Boris Johnston’s historic win for the conservative party, Sterling collapsed from highs of 1.3500 on December 14th as traders took profit at 19-month highs.

An initial jump was seen following a positive GDP figure of 0.4% in the third quarter from July to September this year and a further bounce as the new Parliament voted to support Johnson’s plan to leave the EU on the 31st January.
The US Dollar was the main beneficiary from Sterling weakness as the US Dollar Index (DXY) finished 0.3% higher on Friday. United States third quarter growth was unmoved at 2.1%, supported by a strong labour market at present.

Trading on global markets this week is expected to be light due to the holiday period with United States Durable Goods Orders the only data release on the docket this week likely to impact movement in currency markets.

Expected Ranges

AUD/USD: 0.6840 – 0.6940 ▲

GBP/AUD: 1.8700 – 1.9000 ▼

AUD/NZD: 1.0400 – 1.0500 ▲

AUD/EUR: 0.6200 – 0.6250 ▲

AUD/CAD: 0.9020 – 0.9100 ▲

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