This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
AUD/USD was one of the worst hit as greenback strength weighed on the pair. Additionally, renewed iron ore weakness added to the pressure, with the commodity dropping ore back below $60/t ($58.63/t). This move in the AUD would appease the RBA as jawboning seems to have run its course.
On the calendar today we had Westpac consumer sentiment, which showed some optimism and this is evidence that the rate cut cycle is having an effect on consumers. This reading could even pick up further in months to come as the impact of the budget gives a tailwind. Data is limited on the AUD side for the rest of the week and moves are likely to be driven by USD volatility.
Later today we have FOMC minutes and that’ll be the key release for FX markets. A short-term uptrend on AUD/USD has also been broken now but we might see some support in the $0.7900 region, which is a fairly significant congestion zone.