GMT FX Live – News

             

Overnight Interbank Range

AUDUSD              0.6920 – 0.6948

AUDEUR              0.6174 – 0.6192

AUDGBP              0.5550 – 0.5572

AUDNZD              1.0476 – 1.0503

 

Commentary

  • It’s a very similar story to yesterday, with no major economic data of note over the past 24 hours and market movements subdued ahead of US Fed Chair Powell’s testimony tonight to Congress. The market is currently pricing 27bps for the Fed’s meeting later this month and 65bps of cuts by the end of year.
  • The AUD has been the weakest of the G10 currencies over the past 24 hours, down 0.6%.
  • The NAB business survey released yesterday (as attached) revealed that business confidence largely unwound its sharp bounce in May,  while business conditions remained below average.  The survey suggests that the Australian economy is unlikely to record a significant pickup in growth in Q2. The survey was undertaken after the June rate cut but predated the follow-up rate cut in July and the passing of the government’s personal income tax cuts.
  • We have seen multiple recent lows at 0.6945-50 which provided decent short term support. A break in this level might open up another test of the recent lows sub 0.6800. We’re expecting another quiet day with volatility on the back of Powell’s speech tonight.

 

Data/Events today

  • China CPI
  • UK GDP
  • US Fed Powell Speech
  • US FOMC Meeting minutes