Australian Dollar Outlook - 19 April 2013
Bell FX Currency Outlook: The Australian Dollar remains under pressure this morning and continues to trade below USD 1.0300 after a volatile week.
Australia After Wednesday night's sell off in equities and commodities, it was relatively quiet last night. Commodities kept busy retracing part of this week's falls with gold rising by 1%.
In currency markets, the price action was calm relative to the past few sessions and it seems markets are consolidating and positioning ahead of the G20 meetings tonight and this weekend.
Recent ranges remained unbroken in almost all major currencies. Earnings in the US continue to disappoint, with sluggish equity
markets weighing on the inclination of investors to take risk in currency markets.
It appears today could be quiet and the AUD may be relatively subdued with no major data or events planned. In our time zone, there are a couple of second tier China data releases due, in the form of the MNI Flash Business Sentiment Indicator for April and China's Leading Index.
Next week, the big event locally will be the CPI with forecast for a rise of 0.5% for the underlying inflation rate or 2.4% year on year which may confirm there is downside risk for inflation forecasts ahead and room for the RBA to cut rates again.
Majors: The US Dollar was subdued as were most currencies as financial markets continued to exhibit a negative tone. The German market was soft with Germany seen as more vulnerable to a global growth concerns because of its export orientation.
Weaker data out of the US added fuel to the fire for this point of view. However, London and Paris were flat. Oil prices rose overnight, appearing to consolidate at around current levels following recent declines.
Base metals prices were higher overnight with copper up 1.1% whilst iron ore and thermal coal declined. Agricultural commodities were mixed overnight.
This evening, the Eurozone current account will be published and the ECB is set to announce its LTRO repayments data.
Economic Calendar
19 APR EC ECB announces 3 Year LTRO Repayment
EC ECB Euro-zone Current Account Sa/nsa
CH Conference Board China March Leading Economic Index
CH MNI Flash Business Sentiment Indicator - Apr