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■ The AUD/USD pair held steady around 0.6500 overnight, showing minimal reaction to RBA Governor Bullock’s speech yesterday evening. Bullock maintained a neutral stance, avoiding explicit statements about needing two more favourable inflation reports before considering a cash rate cut. She acknowledged the high margin of error in inflation forecasts and indicated readiness to act if inflation falls significantly below projections.
■ The USD remained subdued, trading near levels seen weeks ago. With US markets closed for Thanksgiving and no significant economic data or Fed speeches until Tuesday, the USD is likely to trade within a narrow range, unless Trump makes an unforeseen policy announcement.
■ After a 3% decline earlier this week, AUD/JPY has found stability. November’s Tokyo CPI, released today, will provide insights into national inflation trends ahead of the BoJ’s December 19 meeting. Core inflation measures are expected to show a slight uptick but remain close to the BoJ’s 2% target.
■ AUD/CAD has maintained a position above the 0.9051 support level this week, buoyed by declining oil prices partly due to a Middle East ceasefire. Canada’s Q3 2024 GDP is projected to slow to 1.1% SAAR. Two years of sluggish growth have suppressed inflation, prompting the Bank of Canada to consider rate cuts.
Mid-market rates.
| Currency Pair | Mid-market rate |
| AUD/USD | 0.6500 |
| AUD/NZD | 1.1040 |
| AUD/JPY | 98.49 |
| AUD/CNH | 4.7132 |
| AUD/EUR | 0.6159 |
| AUD/GBP | 0.5125 |
| AUD/HKD | 5.0594 |
Chart of the day
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