The Australian dollar has had consistent support following on from yesterday’s rates decision which had no mention of future cuts.
The Aussie peaked at 90.70 US cents and current sits about 12 pips below this level but on a positive trend for last 8 hours. The Australian dollar has also begun to makes inroads against the last 6 month trend of the rising Kiwi dollar. The last 3 weeks has seen the Aussie pick up about 3 cents to 1.1631 NZD, although still 11 cents down on the March high. The Gold performance was also notable back up above 1400 USD an ounce, it put on 31 dollars through the European and US sessions.
The US Dollar was better performed against the other major currency pairs with well performed ISM Manufacturing PMI and Construction Spending month on month that rose 0.6% and ahead of estimates. The Greenback came with 14 pips of the 100 Yen mark, and also clawed back against the Euro which is now at 1.317 USD still lower than the open price this week.
The Australian dollar remains as a centre focus this morning with quarterly GDP data expected to show a 0.6% increase, matching last quarter. The European focus resumes again also this time with services PMI releases from Europe and the UK after manufacturing on Monday. Following on later tonight we have Trade Balance from the States and the Canadian rates decision.
Joel Murphy
www.pepperstone.com Joel Murphy is a currency analyst and market commentator for Forex Broker Pepperstone and he regularly features on Sky Business News Australia. He has worked in both retail and institutional Forex for last 8 years and completed a Bachelor of Commerce and a Bachelor of Arts from Monash University
