An uncertain undercurrent perpetuated through trade on Tuesday, forcing the Australian Dollar (AUD) to maintain a narrow trading band as investors adopted a measured and cautious tone.
Despite the risk off mood the AUD edged marginally upward bouncing off lows at 0.7115 to touch 0.7147 before creeping lower into this morning’s open. The AUD continues to lag its antipodean and commodity counterparts as investors prepare for next weeks the Reserve Bank of Australia (RBA) policy announcement. Attentions today turn to domestic Consumer Price Index (CPI) data.
Price pressures are expected to remain soft, while inflation remains woefully short of the RBA’s 2-3% target band, amplifying and supporting calls for policy easing on Nov 3, 2020.
With so many key risk events on the horizon we expect the AUD will maintain its narrow trading band through this week as investor delay bets in either direction until after the U.S. election.#AUD/USD#
AUD/USD: 0.7020 - 0.7180 ▲
AUD/EUR: 0.5980 - 0.6080 ▲
GBP/AUD: 1.8020 - 1.8480 ▲
AUD/NZD: 1.0550 - 1.0680 ▼
AUD/CAD: 0.9350 - 0.9420 ▼