- The Australian Dollar recovers intraday losses as an Iranian official states that there are no immediate plans for retaliation against the Israeli airstrikes.
- The Australian equity market falls to two-month lows on Friday, at 7,489 points.
- The US dollar gained ground following hawkish comments from Fed officials on Thursday.
The Australian Dollar (AUD) trimmed losses following expectations of easing geopolitical tensions, as an Iranian official stated that there are no immediate plans for retaliation against Israeli airstrikes. AUD/USD fell as riskier assets came under pressure due to increased risk aversion in financial markets on Friday. This sentiment was intensified after confirmation by ABC News that Israeli missiles had hit a site in Iran, exacerbating tensions in the Middle East.
The Australian Dollar (AUD) faces challenges along with a decline in the ASX 200 index on Friday, approaching its two-month low of 7,489. This trend was influenced by weak signals from Wall Street overnight. Additionally, the 10-year Australian government bond yield fell below 4.3%, retreating from more than four-month highs, as investors anticipated a dovish outlook from the Reserve Bank of Australia (RBA) on the matter. of monetary policy.
The US Dollar Index (DXY), which measures the dollar against six major currencies, advances amid increased concerns about the possible escalation of the conflict between Israel and Gaza in the Middle East. This has attracted investors in search of safe haven assets. Furthermore, hawkish comments from Federal Reserve (Fed) officials on Thursday caused US Treasury yields and the US Dollar to rise, subsequently putting downward pressure on the AUD/USD pair.
Traders are expected to closely monitor upcoming speeches by Federal Reserve officials. Atlanta Fed President Raphael Bostic will participate in a moderated debate on the US economic outlook at the University of Miami, Florida. Additionally, Chicago Fed President Austan Goolsbee will participate in a question-and-answer session at the Association of Business Journalists' SABEW 2024 Annual Conference in Chicago.
Daily summary Market movements: Australian dollar depreciates on risk aversion and RBA's dovish outlook
- According to Reuters, citing Iran's Fars News Agency, locals reported hearing explosions at Isfahan's central airport. However, the cause of these explosions remains unknown. However, Iranian media have denied reports of a foreign attack on Iranian cities, including Isfahan.
- Atlanta Fed President Raphael Bostic stressed that US inflation is excessively high and stressed that the Fed still needs to make progress in the fight against inflation. For his part, New York Fed President John Williams stressed the Fed's commitment to relying on data and expressed that he currently sees no immediate need to lower interest rates.
- In the US, initial claims for unemployment benefits stood at 212,000 for the week ending April 12, compared to the 215,000 expected.
- The US Philadelphia Fed manufacturing survey showed an improvement in manufacturing sector trends with a higher reading of 15.5 for April, surpassing the expected 1.5 and the previous 3.2.
- The monthly change in US existing home sales fell 4.3% in March, swinging from the previous increase of 9.5%.
- Australia's employment change recorded a drop of 6,600 in March, compared to +7,200 expected and +117,600 previously. The unemployment rate rose to 3.8% in March, below the 3.9% expected but above the previous reading of 3.7%.
Technical Analysis: Australian Dollar Falls Below Psychological Level of 0.6400
The Australian Dollar is trading around 0.6390 on Friday. The latest break below the descending channel on the daily chart denotes a strengthening of the bearish bias. Furthermore, the 14-day Relative Strength Index (RSI) suggests bearish sentiment for AUD/USD as it remains below the 50 level. The main support lies at 0.6350, after the psychological level of 0, 6300. To the upside, immediate resistance for the pair is anticipated at the psychological level of 0.6400. A break above the latter could lead the pair to explore the region around the main level of 0.6450 and the nine-day EMA at 0.6455.
AUD/USD: Daily Chart
Price of the Australian Dollar today
The following table shows the percentage change of the Australian Dollar (AUD) against the currencies listed today. The Australian Dollar was the strongest currency against the New Zealand Dollar.
| USD | EUR | GBP | CAD | AUD | JPY | NZD | CHF | |
| USD | -0.08% | -0.07% | -0.12% | 0.07% | -0.09% | 0.17% | -0.44% | |
| EUR | 0.08% | 0.02% | -0.04% | 0.16% | 0.00% | 0.25% | -0.36% | |
| GBP | 0.07% | -0.01% | -0.06% | 0.16% | -0.01% | 0.24% | -0.38% | |
| CAD | 0.13% | 0.04% | 0.07% | 0.22% | 0.04% | 0.29% | -0.32% | |
| AUD | -0.07% | -0.19% | -0.16% | -0.21% | -0.17% | 0.09% | -0.53% | |
| JPY | 0.08% | 0.03% | 0.02% | -0.02% | 0.17% | 0.25% | -0.35% | |
| NZD | -0.17% | -0.23% | -0.22% | -0.29% | -0.08% | -0.26% | -0.61% | |
| CHF | 0.44% | 0.36% | 0.37% | 0.32% | 0.52% | 0.35% | 0.61% |
The heat map shows the percentage changes of the major currencies against each other. The base currency is chosen in the left column, while the quote currency is chosen in the top row. For example, if you choose the Euro in the left column and scroll down the horizontal line to the Japanese Yen, the percentage change that appears in the box will represent EUR (base)/JPY (quote).
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
