Australian Dollar Outlook – 4-10-13

Bell FX Currency Outlook: The Australian dollar has opened higher, as a fresh bout of US dollar weakness and firmer commodities prices pushed the local currency towards USD 105.00.

Australia: This morning the AUD was at USD 104.90, up from yesterday's local close of USD 104.24. The AUD was the stand out performer, taking out USD1.0500 option barrier level in the process and hitting 3-month highs. It wasn't so much a data release overnight or a particular news story that drove the investors back into the AUD, more a general change of opinion from the investor community looking for yield again. We saw the USD weaken (apart from against the JPY), and the NZD hit 18-month highs. Even the EUR was higher. It was an upbeat night on global equity markets which lifted risk sentiment and also prompted investors to buy currencies such as the AUD and NZD. The higher commodities prices such as oil, gold and copper futures contracts all settled firmer in New York trading, adding to the demand for the AUD.

Majors: Wall Street closed firmer, the Dow climbed 0.40%, a new all-time high, the S&P500 0.35% and stock markets in Europe also posted gains. US job openings data for February were the highest since May 2008 which is an encouraging sign for underlying trends in the US labour market but comes ahead of government spending cuts. Today in Asia the markets will watch the Australian consumer confidence data, as well as the release of Chinese trade figures.

Economic Calendar

10 APR AU Westpac Consumer Confidence Index Apr

CH Trade Balance Mar

US Fed Releases Minutes from Mar 19-20 FOMC Meeting

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