AUDUSD

Open today 0.7385

Yesterday’s Range 0.7331 / 0.7390

NZDUSD

Open today 0.6979

Yesterday’s Range 0.6948 / 0.7010

AUDEUR

Yesterday’s Range 0.6227 / 0.6265

AUDCNH

Yesterday’s Range 4.7555 / 4.7925

AUDNZD

Yesterday’s Range 1.0540 / 1.0572

After slipping lower from the Asia open yesterday, the AUDUSD has recovered and consolidated small gains, but still a close below 0.74-cents. Whilst the he pair is neutral at current levels, it is still at risk of slipping lower with shorter term MA's below longer indicators. Despite the weaker US-dollar position overnight the AUD continues to remain of lesser interest amongst most counterparts according to the technicals. RBA Gov Debelle is scheduled to speak today and amidst a covid resurgence and subsequent lockdowns, is unlikely to deliver much optimism in his, or the Bank's, forward guidance.

Wall Street indices managed to eke out modest gains for the session and traded record highs yet again, albeit in choppy trade. This was in contrast to losses experienced in Asia, ex-Japan, yesterday, where investor concerns linger over China government regulations and marked the Shenzhen and Shanghai composites lower. Australian shares are set to open a tad stronger today, bouyed by better Iron Ore and Copper prices, but appetite is still likely to be hampered by ongoing lockdowns in the major cities.

Gold prices have turned lower as investors become cautious ahead of the Fed policy meeting this week.

Copper prices traded higher as floods in China sparked hopes for demand as inventories were already falling. Iron Ore futures also picked on the back of a recovery in steel margins in China.

Crude Oil prices reversed earlier losses in the session as the market dwelled on tighter supply prevailing into the end of the year.

Market Update

AUDUSD

Open today 0.7375

Yesterday’s Range 0.7357 / 0.7403

NZDUSD

Open today 0.6979

Yesterday’s Range 0.6958 / 0.6992

AUDEUR

Yesterday’s Range 0.6251 / 0.6286

AUDCNH

Yesterday’s Range 4.7658 / 4.7854

AUDNZD

Yesterday’s Range 1.0545 / 1.0616

The AUDUSD opens with a downside bias outlook for the week as it follows the correction in Iron Ore and greater Sydney enters its second week of a rigid lockdown. Not much local economic news today for Australia keeps the attention on the US-dollar and what to expect from the FOMC meeting later this week. Initially it looks like day traders will sell into any rallies to 0.7390 with targets back below 0.73-cents.

Wall Street indices all marked gains into the weekend as upbeat corporate earnings and hints of economic revival continues to fuel investor appetite. Australian shares are set to open higher today , tracking Wall Street gains but are likely to be hampered by ongoing lockdowns in the major cities.

Gold prices settled lower as the dollar strengthened and firmer US Treasury yields.

Copper prices continue their gains as the economic recovery boosts optimism for demand.

Crude Oil prices crept higher for the week as the market expects tighter supply prevailing into the end of the year.

Market Update

Market Update - 22nd July 2021

The Aussie dollar is slowly moving back from the 8 month lows seen yesterday, breaking through the 0.73 level.  COVID-19 lockdowns are still in place in Australia and other states also joining.  Retail Sales also came in lower than expected, disappointing the market with a fall of 1.8% month over month as it was expected to gain 0.7%.  The Westpac leading index also fell to 0.07% versus an upwardly revised 0.05%.  This index is designed to forecast the direction of the economy.  With data being released has been weaker than expected, even though it is very likely brought on by the COVID lockdowns, it would seem that the Aussie may be hit with a continued down trend.   With vaccination rates staying low in Australia, this can only prolong the lockdowns and continue to drag down its economy.  

The U.S. stock market had it's second day of positive territory with the Dow up 286 points and the S&P up 0.82%, 35.63 points.  Global equities should follow suit amidst all the negative COVID news.  

The New Zealand dollar is trading higher today, with a more positive outlook in the short term.  New Zealand remains largely free of community-based infections, giving them an edge up versus Australia when it comes to economic growth without any lockdowns, at the moment.  Also helping the Kiwi fundamentally is the RBNZ's decision to terminate its Large Scale Asset Purchase program scheduled for July 23rd, which priced in a rate hike for New Zealand.  

Market Update - 21st July 2021

NAB Quarterly Business confidence is expected to be released today, and is highly anticipated to see the effect amid all the COVID-19 lockdowns in NSW and Victoria.  June’s result fell significantly to 11 from 20 the prior month.  Business Confidence has definitely fallen across the board and the market is awaiting it’s release today, to point the AUD on it’s continued path lower below 0.73 or above 0.7350. 

The Kiwi is also being hit downward, following suit with the Aussie on COVID-19 concerns.  It is trading little changed at 0.6916, however, after it fell 0.4% the previous day. 

 The US dollar gained significant ground against most of the G10 currencies, on higher U.S. Treasury yields after days of falling below 1.13% with  COVID-19 concerns being the main driver pulling yields lower.  The Dow Jones recovered from previous day losses to gain nearly 550 points after bargain hunters pushed U.S. equities to the largest gain since March.