Australian Dollar Forecast - Nov 26

During the offshore session, the AUD traded in a to a high of USD 0.9325.

Yesterday's speech by Reserve Bank of Australia Deputy Governor Ric Battellino was relatively upbeat about Australia's economic outlook, stating a recent rebound in economic activity in Asia was positive for the nation as it emerged from the global economic downturn.

It was 18 years since Australia experienced negative year-end gross domestic product (GDP) growth, he told delegates at the National Housing Conference in Melbourne, but US Dollar weakness across the board overnight assisted.

Three main factors contributed to the weakness of the USD including Russia saying it was going to diversify their foreign reserves and buy Canadian Dollars.

The Swiss National Bank suggested it was getting close to tightening monetary  policy, which had strengthened the Swiss Franc against the USD and fresh highs in gold had also taken away from the USD that helped underpin commodity-driven currencies like the AUD.

We see the AUD trading between 0.9240 and 0.9375 today being pretty underpinned in the local session.

Majors: The US Dollar fell to a 15 month low after the release of upbeat US data bolstered the outlook for the US economy.

EUR/USD rallied strongly while GBP/USD fell slightly after UK GDP figures showed the UK economy continues to lag behind as other economies recover.

Crude oil increased following a drop in the USD, while spot gold moved higher on reports of India planning additional purchase of gold from the IMF.

Several economic data releases including personal consumption, new home sales and initial jobless claims came in stronger than expected.

European equities ended higher on the release of the US data. US markets are closed tonight.

Provided by bellfx.com.au