Send weekly trading update—21st October 2024
In The News Today! 🌏 – Market Conditions and What to Look out for this Week 🗓️
RBA and Global Rate Cuts:
The RBA is expected to hold rates until May next year after strong domestic employment data slashed the 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;
Wednesday 23 October
🇬🇧 BOE Gov Bailey Speaks - GBP
Thursday 24 October
🇨🇦 BOC Monetary Policy Report - CAD
🇨🇦 BOC Rate Statement - CAD
🇨🇦 Overnight Rate - CAD
🇨🇦 BOC Press Conference - CAD
🇬🇧 BOE Gov Bailey Speaks - GBP
🇫🇷 French Flash Manufacturing PMI - EUR
🇫🇷 French Flash Services PMI - EUR
🇩🇪 German Flash Manufacturing PMI - EUR
🇩🇪 German Flash Services PMI - EUR
🇬🇧 Flash Manufacturing PMI - GBP
🇬🇧 Flash Services PMI - GBP
🇺🇸 Unemployment Claims - USD
Friday 25 October
🇺🇸 Flash Manufacturing PMI - USD
🇺🇸 Flash Services PMI - USD
🇨🇦 Core Retail Sales m/m - CAD
🇨🇦 Retail Sales m/m - CAD
AUD-USD 🇺🇸
Rates have increased by 0.29% to 0.6713 since Friday.
(11AM AEDT)
AUD-GBP 🇬🇧
Sitting at 0.5145 the AUD - GBP has remained within band over the last week.
(11AM AEDT)
AUD-NZD 🇳🇿
Rates have increased after the initial drop last week to 1.1050
(11AM AEDT)
AUD-EUR 🇪🇺
AUR-EUR has seen a 0.20% increase since this time last week currently at 0.6177
(11AM AEDT)
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 a currency's buy and sell prices in the foreign exchange market. Many other factors might impact pricing, and therefore, the mid-market rate is not typically the end rate offered to consumers by banks or financial services providers. For further information on how to Send charges for its services, please see our PDS.
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