Aussie leads gains
The Australian dollar led gains overnight as the AUD/USD reached five-week highs ahead of today’s critical GDP release.
Australian annual September-quarter economic growth is forecast at 2.2% compared with 1.8% for the June quarter.
The AUD/USD gained 0.3% to close at the highest level since 29 October.
The NZD/USD climbed 0.1%.
Australian GDP is due at 11:30 a.m. AEDT.
The US dollar was weaker in most other markets, with the EUR/USD up 0.1% and GBP/USD flat.
USD edges higher as SGD slips
The final reading of the S&P Global US manufacturing PMI came in at 52.2 in November, easing slightly from 52.5 in October.
Operating conditions improved for a fourth straight month, but momentum slowed as weak sales dragged on demand. That slowdown drove a sharp build-up in finished goods inventories for the second month running, according to S&P.
While the US dollar was mostly weaker overnight, in Asia the US dollar was stronger in line with gains in USD/JPY.
The USD has gained ground against the Singapore dollar after recent corrections.
The next resistance sits near the 21-day EMA of 1.3003, and USD buyers may look to step in.
Yen steadies as Katayama backs BoJ
Japan’s Finance Minister Satsuki Katayama said monetary policy decisions should remain with the Bank of Japan, sidestepping Governor Ueda’s recent remarks. She stressed the government expects the BoJ to steer policy toward 2% inflation supported by wage growth.
Katayama added that the central bank and government are working closely, monitoring corporate trends, and share the view that the economy is gradually recovering.
The USD/JPY pair has eased in recent days, with the chart showing its correlation to US rate expectations breaking down, but the pair was higher overnight.
Key support sits near 155.24 on the 21-day average, followed by 153.26 on the 50-day.
Aussie gains ahead of GDP
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 1 – 6 Dec
Have a question? [email protected]
*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
