The Australian Dollar to US Dollar Continues Above 0.6

AUD GBP Takes Aim for Another Move Lower

The AUD interbank exchange rate is today ranging between 0.6265 and 0.6323. Australia has managed to contain the Coronavirus well compared to a lot of other countries with just over 6,400. The US has been far more affected with over 644,000 cases. However, President Donald Trump recently stated that he believes it is under control and that many states by the end of this month could see an easing in restrictions.

Yesterday, Trump announced that they would be halting their support for the World Health Organisation in the belief that they did not act fast enough and warn enough of the dangers of the pandemic that started from Wuhan in China. There was an increase in demand for the US dollar yesterday, as investors sought after the safe haven currency after the International Monetary Fund warned the Coronavirus crisis may lead to the worst economic downturn since the great depression.

Better than expected Australian data releases

This morning, Australia released their employment change figures for March that came in better than expected at 5,900 versus a forecast -40,000. The Australian unemployment rate for March fell to 5.2% against a forecast 5.5%.

Later today US data releases are announced. At 13:30 UK time, US building permits data for the month of March are released and are currently forecast at 1.3 million against a previous reading of 1.4252 million. Initial jobless claims are forecast to come in at 5,105k versus a previous reading of 6,606k however we may see this figure come in even higher with recent news indicating more jobs in the US have been affected. Lastly the Philadelphia fed manufacturing index for April is forecast to come in markedly lower at -30.0 against a previous reading of -12.7.

AUDUSD forecast higher?

As Australia is far less affected in comparison to the US by the Coronavirus coupled with better than expected economic data, we could see the AUDUSD forecast come in higher. Now that China is out of lockdown, the close trading links between the two countries, means now that China has started to resume business, this in turn could help Australia with an increase in demand for their exports such as iron, coal and natural gas.

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