Australian Dollar outlook for Thursday – ANZ

By FXStreet FXStreet (Bali) – The ANZ Research Team shared their daily thoughts on the Australian Dollar outlook vs its major peers, noting the AUD/USD remains pressured, although they see the downside contained by 0.7180 today.

Key Quotes

AUD/USD: Still under pressure… Following the decline yesterday, pressure has remained on the cross. Overnight the USD was stronger as ‘fear’ rose – equities, commodities and bonds yields all lower. The AUD may soon test the USD0.7200 psychological support level, which held during the London and New York session. Expected range: 0.7180 – 0.7276

AUD/NZD: AUD catch-up… After yesterday’s decline from the 1.0800 level the cross failed to rally back in early New York trading. This cross continues to be driven by flows in the ‘legs’ with AUD receiving more flow overnight. Expected range: 1.0684 – 1.0799

AUD/EUR: ECB… Focus on the ECB tonight. While markets are not expecting further policy announcements, the statement and press conference may provide clues as to the ECB’s willingness to provide more stimulus – the base case is still the ECB is prepared for ‘whatever it takes’. Risks are for a stronger euro if this isn’t reinforced. Expected range: 0.6335 – 0.6400

AUD/JPY: Fear index… The currency …read more

Source:: FX Street