26th April 2021 - AUD/USD consolidates recent gains in a small range

Good Morning,

Market Headlines

The dollar fell on Friday amid prevalent risk appetite. Wall Street rallied following upbeat Markit flash PMIs for the EU and the US, with most indexes reaching record levels, boosting hopes for a soon-to-come economic recovery after the pandemic slump. Commodity-linked currencies were underpinned by firmer stocks but remained within familiar levels as gold and oil failed to impress. The bright metal fell for a second consecutive day, finishing the week at $ 1,770 a troy ounce. WTI ended the day little changed at $ 62.00 a barrel.

Overnight Currency Ranges

AUD/USD 0.7693 0.7760

GBP/USD 1.3835 1.3895

USD/JPY 107.48 108.14

NZD/USD 0.7151 0.7203

USD/CAD 1.2461 1.2509

USD/CNH 6.4856 6.4983

AUD/JPY 83.11 83.74

AUD/NZD 1.0763 1.0783

AUD Thoughts

Despite today’s data calendar being rather quiet, we have the FOMC meeting Wednesday night as well as Biden’s first address to Congress, where he is expected to flesh out plans for his infrastructure spend.

AUD/USD traded to a low of 0.7725 overnight with demand still expected ahead of 0.7690 then 0.7660 while offering interest has likely increased above 0.7770.

Event Risk Data Today

Germany – April IFO Survey

US – March Durable Goods Orders

US – April Dallas Fed Manufacturing Activity Index