19th January 2021 - AUD/USD rebounds from weekly lows as US dollar loses strength

Updated: Feb 4

Good Morning,

Market Headlines

The US holiday thinned overnight trading and left US equity futures and European equities little changed. US treasury bond market was closed, but futures did trade, the 10yr little changed around 1.08%. Commodities: Brent crude oil futures fell 0.7% to $54.75, copper rose 0.3%, iron ore rose 0.4% to $172.60, and gold rose 0.5%.

Overnight Currency Ranges

AUD/USD: 0.7659 – 0.7695

EUR/USD: 1.2054– 1.2086

GBP/USD: 1.3522 – 1.3587

USD/JPY: 103.62 – 103.84

USD/CAD: 1.2756 – 1.2800

NZD/USD: 0.7097 – 0.7127

AUD/JPY: 79.48 – 79.41

AUD/NZD: 1.0790 –1.0807

AUD Thoughts

Another quiet day is expected during Asian trading session as attentions turns to the US as the week progresses. The confirmation hearing for President-elect Biden’s Treasury secretary, Janet Yellen, is set for this evening, one day prior to Inauguration Day. This could see her comment on the outlook for fiscal policy and the US dollar.

The AUD/USD traded in a 0.7659/0.7710 to start the week with support still expected ahead of 0.7640. Offering interest has grown and likely rests ahead 0.7750 and again at 0.7820.

Event Risk Data Today

Australia - ABS Weekly Payroll Jobs and Wages will be released for the week-ended January 2.

New Zealand - The Q4 Quarterly Survey of Business Opinion will provide an early indicator of quarterly growth. Spending has risen above pre-COVID levels ahead of the December update of retail card spending.

Germany - December CPI y/y

Germany - January ZEW Survey Expectations

Europe - January ZEW Survey Expectations

Canada - November Manufacturing Sales m/m