Send Payments Market Update 28th October 2024.

In The News🌏 – Market Conditions and what to look out for this week 🗓️

AUD/USD

• AUD/USD trades around 0.6605, pressured by a stronger U.S. dollar due to robust U.S. economic data and tensions in the Middle East.

  The Australian Dollar may regain ground if RBA maintains its hawkish stance.

• The RBA currently holds a cash rate of 4.35%, aimed at controlling inflation within the 2%-3% target range while supporting employment.

• The central bank is unlikely to consider rate cuts in the near term, pending key domestic inflation data this week.

• Australia's Judo Bank Services PMI rose to 50.6 in October, indicating nine consecutive months of growth in the services sector.

AUD/GBP

• Expected Bank of England (BoE) interest rate cuts could soften the Pound.

• AUD/GBP is nearing a multi-month low of 0.5050 as the Aussie continues its poor run.

• Since the start of October, the Australian dollar has given up almost 2.5% against the pound as global risk sentiment and a slow Chinese economy continue to weigh on the AUD.

AUD/JPY

• AUD/JPY trades around 101.20, breaking a three-day winning streak.

• AUD/JPY sees limited JPY upside as Japan’s ruling party loses its majority in a blow to the new prime minister.

• Growing concerns over Japan’s political future may impact the Bank of Japan's policy outlook.

Gold Price Movements

• Gold holds below $2,750 but shows limited downside due to global political uncertainties.

• Bearish technical indicators, including a head and shoulders pattern, suggest potential for deeper declines if the $2,705 support level is breached.

Send Payments Competition

When you make an international transfer with Send from 13th October 2024 to 31st December 2024, you'll go into the draw for the chance to win 1 of 5 $500 Luxury Escapes vouchers when you transfer $AUD 10,000 or more. T&C’s apply* 

Last Week 🗞️ Key Takeaways

RBA and Global Rate Cuts:

• The RBA is expected to keep rates on hold until May next year after some strong domestic employment data slashed chances of a rate cut this year.

• Rate cuts from other central banks, such as the Fed in America and the RBNZ, are pressuring discussions on potential easing elsewhere.

AUD/USD Outlook:

• AUD/USD rose to 0.6715 in Monday's early session, supported by the weaker USD and Australia's strong employment data, which lowers the likelihood of an RBA rate cut.

• Investors await Fed officials' speeches, which may influence USD moves and broader market sentiment.

• China’s stronger-than-expected industrial production and retail sales have boosted AUD, as China remains a key trade partner.

AUD/JPY:

• AUD/JPY weakened to 100.50 on Friday due to fears of Japanese intervention in FX markets.

• It continues to trade within a 1.7% trading band, staying close to the 100.00 mark.

EUR/AUD:

• EUR/AUD dropped as robust Australian employment data clashed with the ECB’s decision to cut rates by 0.25%, reflecting a weaker European outlook.

GBP/AUD Forecast:

• The Pound has been overvalued against the AUD, but recent broad-based AUD strength has led to corrections, with the current GBP/AUD rate around 1.9472. Year-end projections suggest further downside potential for the GBP against the AUD, with a wide forecast range of 1.83–2.03.

Things to look out for this week; 

• Tuesday 29 October

  🇨🇦 BOC Gov Macklem Speaks - CAD

• Wednesday 30 October 

  🇺🇸 CB Consumer Confidence - USD

  🇺🇸 JOLTS Job Openings - USD

  🇦🇺 CPI q/q - AUD

  🇦🇺 CPI y/y - AUD

  🇦🇺 Trimmed Mean CPI q/q - AUD

  🇩🇪 German Prelim CPI m/m - EUR

  🇺🇸 ADP Non-Farm Employment Change - USD

  🇺🇸 Advance GDP q/q - USD

• Thursday 31 October 

  🇨🇳 Manufacturing PMI - CNY

  🇯🇵 BOJ Policy Rate - JPY

  🇯🇵 Monetary Policy Statement - JPY

  🇯🇵 BOJ Outlook Report - JPY

  🇯🇵 BOJ Press Conference - JPY

  🇨🇦 GDP m/m - CAD

  🇺🇸 Core PCE Price Index m/m - USD

  🇺🇸 Employment Cost Index q/q - USD

  🇺🇸 Unemployment Claims - USD

• Friday 1 November

  🇨🇭 CPI m/m - CHF

  🇺🇸 Average Hourly Earnings m/m - USD

  🇺🇸 Non-Farm Employment Change - USD

  🇺🇸 Unemployment Rate - USD

AUD-USD 🇺🇸

Rates have decreased by 1.65% to 0.6595 since this time last week.

(2PM AEDT 28/10/2024)

AUD-GBP 🇬🇧

Sitting at 0.5092 the AUD - GBP has dropped since Wednesday 23 Oct by 1.04%

(2PM AEDT 28/10/2024)

AUD-NZD 🇳🇿

Rates have remained within the 1.1030-1.1070 trading band throughout the last week

(2PM AEDT 28/10/2024)

AUD-EUR 🇪🇺

AUR-EUR has seen a 1.19% decrease since this time last week currently at 0.6113

(2PM AEDT 28/10/2024)

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These rates reflect the mid-market rate and are current at the time of writing but subject to change. 

Please note that the mid-market rate is the midpoint between the buy and sell prices of a currency in the foreign exchange market. There are many other factors that might impact on pricing and therefore the mid-market rate is not typically the end rate that is offered to consumers by banks or financial services providers. For further information on how Send charges for its services, please see our PDS.

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