Bell FX, CMC Markets Currency Outlook: Australian Dollar slips ahead of jobs data today. The USD, on the other hand, got a strong push from the U.S. retail sales data, thanks to the confidence extended by foreign investors in the U.S. economy. The ICE dollar index was at 82.936 up from 82.585 on the previous session.

Australia: The Australian Dollar has opened slightly lower this morning as continued strong data out of the States saw the US dollar higher overnight.

The AUD held onto gains overnight to retreat in sympathy with the NZD this morning. The NZD was sold off heavily in morning trade as the RBNZ delivered a more dovish statement than expected, emphasising the downside risks to the economy.

The Peoples Bank of China held a press conference yesterday stating it will target M2 growth of 13% in 2013; slightly less than the 14% recorded last year.

As inflation becomes a growing concern for China, the central bank has switched to a vigilant mode with a tightening bias of late.

Today the currency will be driven largely by domestic employment figures due at 11:30am this morning. Analysts see the February data showing a rise in the unemployment rate to 5.5% from 5.4% in January with a rise in jobs of 10k.

Majors: The recent good data run out of the US has continued overnight as February Retail Sales data printed stronger than expected.

US bond and equity markets finished the session marginally higher as gains were unwound later in the session. The S&P 500 closed 0.1% higher at 1,554 while the DJIA continued its record run higher inching up to 14.456.

Weaker euro-zone industrial production dampened sentiment mid-session and weighed on European stocks with all but German equities closing lower.

The German DAX rose 0.1% to 7,971. A lacklustre Italian bond auction also weighed on the EUR and GBP which are both lower and a stronger US dollar saw hard commodities lower.

Spot gold also finished 0.2% lower after rising sharply in the previous session to USD 1,589.3 an ounce. Oil prices also declined after a report showing US inventories had risen.

WTI futures fell 0.4% to USD 92.3 per barrel while Brent decreased 1.0% to USD 108.3 per barrel. Tonight will see Weekly jobless claims for the US along with inflation and current account data
Economic Calendar
14 MAR AU Feb Unemployment Rate
AU Feb Participation rate
US Feb PPI %mth
US Q4 CAD balance $bn

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