Australian Dollar Outlook - 19 September 2014
Bell FX Currency Outlook: The Australian Dollar has had a small bounce after some initial USD strength but still remains below the 90 cent level
Australia: The AUD reached a low of around 0.8925 at 10:30pm following some good US employment data, but bounced back to touch a high of 0.9000 before settling at current levels of around 0.8980. There were no major data releases in Australia yesterday, leaving the range for the day relatively tight once the market had digested the news out of FOMC.
Today is also quiet on the data front although news of the Scottish independence vote will be flowing through over the course of the day, with
exit polls showing the "no" vote is ahead. The first results are expected around 11:00am AEST, while at around 3pm AEST results are release
from Edinburgh, Glasgow and Aberdeen (all representing a total of 25% of the vote) and the official result expected around 4pm.
Majors: The pound strengthened for a third day versus the euro, reaching its highest level in two years, as Scotland's electorate voted on whether to end a three-century-old union with the UK. Sterling appreciated versus most of its 16 major peers as a poll by Ipsos Mori showed 53 percent of
those surveyed said they would vote "no" to independence.
The USD strengthened to the highest in six years versus the yen after the Federal Reserve raised its target interest-rate forecast yesterday, underlining the divergence in monetary policy between the U.S. and Japan. The USD is currently buying about JPY 108.75, the highest since September 2008.
A good initial jobless claims number in the US helped boost the currency, with claims falling from 316k last week to 280k, a two month low. Housing
starts for August were slightly down but this follows a very strong reading in July and the trend in housing construction remains positive. Tonight is a
quiet night for data, with German PPI and Canadian CPI the only releases.
Economic Calendar
19 SEPT NZ ANZ Consumer Confidence Index/MoM Sep
NZ ANZ Job Advetisments MoM Aug
EC ECB Current Account SA/NSA Jul
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