Australian Dollar Outlook - December 6, 2013
Bell FX Currency Outlook: Tonight's US non-farm payrolls report will be scrutinised by financial markets for its implications for the US Federal Reserve's asset purchasing program.
Australia: The AUD received a modest boost overnight from US dollar weakness to be trading at about USD 0.9065 this morning. The AUD is
now higher than where it was before yesterday's international trade data, which showed a wider deficit in October, at $529m, from $271m in
September.
The deterioration in the trade deficit was driven by weaker-than-expected resource and rural exports, while imports rose modestly as
flagged by the merchandise trade release.
Majors: Tonight the focus will be on the US non-farm payrolls data. The market expects payrolls to have increased by 185k.
Also in Australia, negotiations for a free trade agreement with South Korea were completed yesterday. Prime Minister Tony Abbott said that although the agreement was yet to be approved by cabinet the removal of tariffs on Australia's major exports to South Korea would significantly benefit Australian exporters, particularly of beef and wheat.
The EUR strengthened against the USD after comments from ECB President Mario Draghi following the Bank's decision to leave policy rates unchanged were interpreted as generally less dovish. The GBP weakened, the weakest performing currency over the past 24-hours, after the Bank of England left policy unchanged and despite upward revisions to the UK fiscal outlook in the Chancellor of the Exchequer's Autumn Statement.
Economic Calendar
06 DEC NZ Wholesale Trade Oct
US Change in Nonfarm Payrolls Nov
US Unempployment Rate Nov
US Personal Income/Spending Oct
For latest pricing, ranges visit www.bellfx.com.au