The Australian dollar is pushing higher as commodity prices surge

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The Australian dollar bounced on Monday, helped by surging commodity prices, particularly in crude oil and iron ore.

Here’s the scoreboard as at 8am AEDT.

AUD/USD 0.7687 , 0.0037 , 0.48%
AUD/JPY 87.44 , 0.21 , 0.24%
AUD/CNH 5.0915 , 0.0155 , 0.31%
AUD/EUR 0.6620 , 0.0032 , 0.49%
AUD/GBP 0.5835 , -0.0011 , -0.19%
AUD/NZD 1.1089 , 0.0018 , 0.16%
AUD/CAD 0.9767 , 0.0009 , 0.09%

After opening the session at .7650, the AUD/USD ground higher in the second half of the session, assisted by firmer commodity prices.

Brent crude, which is influential on LNG prices, jumped 3.5% to a fresh two-year high on heightened geopolitical concerns in Saudi Arabia and continued speculation that OPEC and non-OPEC producers will extend production limits beyond March next year.

Iron ore prices also surged more than 5%, logging the largest gains in over three months.

Gold and most base metals also rose, helping to support the Aussie against the greenback and the crosses.

The AUD/USD is now just below its 200-day moving average of .7696, an area it has been oscillating around since the end of October.

AUD/USD Hourly Chart

Turning to the day ahead, the movements in the Aussie will likely be dictated by the Reserve Bank of Australia’s (RBA) November interest rate decision that is due to arrive at 2.30pm AEDT.

While no one thinks that rates will move today, traders will be eyeing the accompanying monetary policy statement for clues as to what changes — if any — there will be in the bank’s updated economic forecasts released later in the week.

This 10-second guide has more on what to look out for.

Besides the RBA decision, it will likely be a quiet session with most of Australia focused on the running of the Melbourne Cup. Victoria is on holiday while most other states and territories will be enjoying an “unofficial” holiday to mark the event.

Outside of Australia, data highlights include German industrial output, Halifax house price data from the UK, eurozone retail sales along with JOLTS job openings, consumer credit and weekly API crude oil inventory data from the United States.

China is also expected to release FX reserve data for October at some point during the session.

Given the relatively quiet data calendar, movements in Chinese commodity futures may also be influential on the Aussie in Asian trade.

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