Australian Dollar Outlook - 22 November 2012
Bell FX Currency Outlook: Australian Dollar opens little changed after a subdued overnight session
Australia: The Australian Dollar has this morning opened at 1.0364 against the Greenback after trading to a low of 1.0339 overnight.
Modest gains were seen in equity markets as EU policy makers reassured markets that a deal to release aid to Greece was close after yesterday's disappointing announcement markets would have to wait till Monday for an agreement.
News of a ceasefire in Gaza after more than a week of attacks and air strikes further boosted optimism. The EUR recouped losses after a quiet night of trade with poor trade data weighing on the Yen, the Australian dollar was largely unchanged.
The focus shall be on China today with the HSBC flash manufacturing data due at 12:45pm.
Tonight the focus shall be on Europe, with the US thanksgiving holiday tonight.
Majors: The Israel, Hamas ceasefire saw a modest rise in US equity markets with the S&P 500 ending the session 0.2% higher at 1,390 whilst the DJIA was 0.4% higher at 12,836. Hopes that an agreement for Greek aid was close which saw European equities marginally higher with the FTSE closing 0.1% higher at 5,752 and the German DAX 0.2% higher at 7,185.
Despite EU policymakers reassuring markets, there is yet to be an agreement on Greece's fiscal problems. Greece will likely need a third bailout and easier terms on current funds if it is to reduce its debt to 120% of GDP by 2020.
US investor confidence figures were revised down for November as fiscal cliff concerns intensify. This comes ahead of the Thanksgiving weekend and Black Friday which traditionally is the largest sales of the year for retailers in the US.
Oil prices rose overnight, although news of the Gaza ceasefire capped gains. Brent rose 0.8% to USD 110.8 per barrel while WTI futures rose 0.9% to USD 87.5 per barrel. Spot gold prices were broadly unchanged closing at USD 1,729 an ounce. Metals and commodity prices were mixed.
Economic Calendar
22 NOV CH Nov HSBC manufacturing PMI flash
EU Nov factory PMI advance
EU Nov Consumer Confidence advance
EU leaders summit
US Thanksgivingf you require latest pricing and ranges.