Australian Dollar Outlook - 03/02/2012
Bell FX Currency Outlook: The local unit maintained momentum overnight touching a high against the US dollar of USD1.0745 to open above USD1.0700 this morning.
Australia: During the local session yesterday the Australian dollar rose, after better than expected Trade Balance data showed a surplus of 1.71B vs. 1.22B expected. Headlines drove what was a generally positive session last night. Sentiment was given a strong boost as comments from Chinese Premier Wen following talks with Germany's Angela Merkel, suggested that China was considering a greater involvement in the EFSF and ESM stabilisation fund. These comments were later qualified as
China is still researching on how it may be able to participate; Europe must rely on itself to reduce its debt burden and introduce structural reforms. We expect that during today's local session the AUD will remain in a fairly tight trading range ahead of tonight's non- farm payrolls data out of the US.
Majors: Sentiment recovered is the US as US initial jobless claims figures took another step in the right direction, down to 367k from 379k the previous week.
US Fed chairman Ben Bernanke reiterated the Fed's dovish stance before the House Budget Committee. US stocks were little changed following yesterday's rally as investors await key employment figures due for the US tonight. The S&P 500 added 0.1% to 1325.5, while the Dow Jones fell 0.1% to 12705.4. Tech stocks led the Nasdaq higher 0.4% to 2859.7.
Gold rose to two-month highs off the back of US employment figures and ongoing stimulatory actions by the Fed finishing 0.8% higher to USD 1,756.83 an ounce. Oil prices were mixed with WTI futures closing 1.2% lower at USD 96.46 per barrel while Brent futures gained 0.6% to USD 112.19 per barrel.
Economic Calendar
03 FEB CH China HSBC Services PMI JAN
EUR Euro-zone Retail Sales DEC
US Change in Non-farm payrolls JAN
US Unemployment Rate JAN