Australian Dollar Outlook - 28 May 2013
Bell FX Currency Outlook: The Australian Dollar has opened almost unchanged this morning after a quiet offshore session overnight.
Australia: Markets in the US were closed for Memorial Day public holiday and UK markets were closed for the Spring bank holiday.
This made for very quiet trading with most currencies hovering around in recent ranges for much of the session. The AUD is finding support around USD0.9600 level, however some traders see USD0.9500 as the next big level of support.
With the lack of any local data this week, we will have to look to offshore events for direction. On the day we expect further range trading with resistance situated around USD0.9700.
Majors: Trade flows were light Monday night with the EUR and the GBP little changed against the USD. The JPY ended the session higher against the USD, extending its gains from last week as investors sought the safe haven currency.
The JPY has been an outperformer in the G-10 group of currencies over the past week. With concerns about volatility in the Japanese bond market and a sell-off in Japanese stocks, the JPY was in demand, mainly in the back of a sudden rise in risk aversion.
Markets will turn its attention to tonight's consumer confidence data in the US as markets return to more normal trading volumes.
Economic Calendar
28 MAY US Consumer Confidence
SP Spain Budget Balance
UK Nationwide House Prices