Forex Market: AUD/USD daily trading forecast

Written by Miroslav Marinov

Miroslav Marinov, a financial news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Foreign Exchange Market, as currently his focus is set on the major currencies of eight developed nations worldwide.

, | Updated: October 30, 2024

Yesterday’s trade saw AUD/USD within the range of 0.7239-0.7300. The pair closed at 0.7260, up 0.12% on a daily basis, following two consecutive trading days of losses. The daily low was a test of the low from Tuesday, while the latter has been lowest level since October 14th, when a low of 0.7195 was registered.

At 7:21 GMT today AUD/USD was losing 0.65% for the day to trade at 0.7213. The pair touched a daily low at 0.7211 at 7:19 GMT. It has been the new lowest level since October 14th.

No relevant macroeconomic releases, which may influence AUD/USD trading, are scheduled today.

Bond Yield Spread

The yield on Australia’s 2-year government bonds went as high as 1.848% on October 20th, or the highest level since October 15th (1.852%), after which it slid to 1.812% at the close to add 3.2 basis points (0.032 percentage point) compared to October 19th. It has been the second straight trading day of increase.

The yield on US 2-year government bonds climbed as high as 0.637% on October 20th, or the highest level since October 13th (0.637%), after which it fell to 0.633% at the close to gain 3.6 basis points (0.036 percentage point) compared to October 19th.

The spread between 2-year Australian and 2-year US bond yields, which reflects the flow of funds in a short term, shrank to 1.179% on October 20th from 1.183% during the prior day. The October 20th yield spread has been the lowest one since September 29th, when the difference was 1.176%.

Meanwhile, the yield on Australia’s 10-year government bonds soared as high as 2.702% on October 20th, or the highest level since October 13th (2.715%), after which it slid to 2.674% at the close to add 5.7 basis points (0.057 percentage point) compared to October 19th. It has been the second consecutive trading day of increase.

The yield on US 10-year government bonds climbed as high as 2.079% on October 20th, or the highest level since October 9th (2.138%), after which it slipped to 2.058% at the close to add 3.5 basis points (0.035 percentage point) compared to October 19th.

The spread between 10-year Australian and 10-year US bond yields expanded to 0.616% on October 20th from 0.594% during the prior day. The October 20th yield difference has been the largest one since October 15th, when the spread was 0.620%.