Australian Dollar Outlook - 11 July 2013
Bell FX Currency Outlook: The Australian dollar has a wild night.
Australia: The AUD moved around last night due to a combination of illiquidity & Ben Bernanke's speech resulting in some decent moves. After breaking the 0.9200 range in early London, it fell to below 0.9100 at one point after the release of the FOMC minutes (around 4:00am). Then another bounce after Bernanke's Q&A session, where his comments were taken as a little more dovish that expected, has seen it back above 0.9200.
The AUD was higher yesterday evening despite the weak NAB Business Survey and the poor China trade data. This looks to be evidence that the market is very short the AUD and are not particularly bearish the currency at present.
The key today will be the Labour force data due at 11.30am. Majors: Some good moves in the AUD crosses, with the AUD generally underperforming.
Since the local close yesterday, the AUD has fallen around 50 points against the CAD, GBP & NZD, 70 points against the JPY
and 100 points against the EUR.
The biggest move was the EUR, finishing up more than 200 points against the USD. This USD weakness seems to be continuing this morning. It is USD weakness, rather than AUD strength driving it today. Equities spent most of the night in the red but rallied after the release of the Fed's Minutes. The S&P had a slight rise of 0.02% with the Dow down less than 0.1%.
Economic Calendar
11 JULY AU Unemployment Rate
JN BOJ Target Rate
US Initial Jobless claims