Australian Dollar Outlook – December 4, 2014

US Dollars — Gisele Bundchen 34 is the highest paid model in the world; an estimated amount she owns each year is $47 million Reuters

Bell FX Currency Outlook: The Australian Dollar is lower after yesterday's weaker-than-expected GDP data from around 0.8460 to 0.8400 and after some intra-session variation overnight, that's about where it sits this morning.

Australia: Q3 GDP data printed much weaker than expected yesterday recording a 0.3% q/q (mkt: +0.7% q/q) rise, with the main culprit being a much sharper than expected decline in business investment. While the 0.3% q/q gain in GDP is a disappointing result, the income measures of GDP were weaker still. This weakness in income will flow through to softer growth in the real economy and will weigh on profits, wages, and public revenues, and flow through to softer consumer spending, business investment and public demand. The main interest today will be the October ABS retail sales report.

Majors: US data remained strong with solid ADP employment numbers (+208k) along with a very sharp rise in the ISM non-manufacturing PMI to 59.3, the strongest level since August. New orders, export orders, order backlogs, and activity all rose strongly. The employment sub-component eased to 56.7 from 59.6 in October, although the October numbers were boosted by holiday hiring. The EURO traded at two year lows following the latest round of economic data. Data released overnight showed a sharper slowdown in the Euro Zone private sector activity than first estimated. The final services PMI for November was revised to 51.1 from 51.4 in November.

ECONOMIC CALENDAR

04 DEC AU Retail Sales Oct

AU Trade Balance Oct

UK BOE Interest Rate Decision

EU ECB Interest Rate Decision

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