FOREX

The Australian dollar continued its advance yesterday, strengthening to its highest level in 11 weeks against its US Counterpart.

Commodity currencies were the main benefactor following the second day of Ben Bernanke’s testimony to congress, which combined with the acknowledgement of a weakening US economic recovery, QE3 rumours started flying.

After dipping towards 1.0200 yesterday the Australian dollar has returned to its opening levels for the week following speculation the US central bank may need to provide stimulus following some disappointing US economic indicators overnight

Bell FX Currency Outlook: The Australian Dollar has opened above 1.0200 following Friday's Chinese Q2 GDP data and rallying equity markets Friday night.

In a largely risk-off week the Australian dollar did well to close up above $1.02 Friday night, as data from China and the United States gave rise to a last minute sentiment-based rally.

Triggering a large sell-off in the Australian dollar yesterday, Australian employers unexpectedly reduced payrolls in the month June.

The Australian dollar consistently strengthened throughout yesterday’s local session after a private report showed consumer confidence rose to a five-month high in July.

Concern grew yesterday that Chinese growth is likely to slow over the coming quarter after data showed inbound shipments rose by an unflattering 6.3 percent in the month of June, almost half of the 11 percent increase forecasted.

The Australian dollar traded lower for much of yesterday' session as data flows out of China, Japan and the US all pointed towards a slowdown in global economic growth.

Following a relatively flat start to the day the Australian Dollar fell as European and US Markets opened amid renewed concern that interest rate cuts around the globe last week will not be enough to trigger a spur in demand.

Some stellar Australian retail sales for the month of May added to the recent chain of positive economic releases and the Australian dollar rallied accordingly.

The Reserve Bank of Australia left rates on hold yesterday stating they had already delivered ‘material’ easing over the past six months, that Europe still remains a risk and that domestic inflation remains ‘consistent with the target’.

The Australian dollar struggled to hold onto modest gains intraday yesterday after a survey showed inflation has fallen to its lowest level since 2009.

Bell FX Currency Outlook: The Australian Dollar has opened this morning firmly above 1.0200 after a breakthrough in the EU summit in Brussels late last week. European bailout funds will be directly lent to Spanish banks (rather than to the Spanish government).

The Australian dollar jumped higher on Friday as European leaders finally made headway in unifying the European banking sector and working towards calming the area’s debt crisis.

Whilst Asian share markets enjoyed some solid gains in early morning trade yesterday boosting the Australian dollar to a late afternoon high of 1.0125 against its US Counterpart, initial optimism turned to scepticism as the higher yielding asset entered the offshore session.

Nervousness in the markets ahead of the EU summit has been offset by encouraging US fundamentals last night and the net effect on the Australian dollar was positive.

The Australian dollar has gained ground over the last 24 hours as market participants speculate the RBA will keep rates on hold when they meet next Tuesday.

It was a similiar story for the Australian dollar yesterday as investors appeared reluctant to hold long positions in the currency deemed to be riskier in nature.

Bell FX Currency Outlook: After all the volatility of the last week or so the Australian Dollar starts the week over parity after fairly benign announcements on Friday.

In a relatively uneventful day for the Australian dollar, the higher-yielding currency failed to find much support overnight Friday, trading to a late session low of 1.0007 against its US Counterpart.

A mixed session for the Asian region saw the Australian dollar post tentative gains towards 1.0200 early on before disappointing Chinese manufacturing figures sent the local unit lower.

The Australian dollar marched ever so slightly higher throughout onshore trade yesterday as optimism towards the forming of a Greek pro-austerity government and the prospect of stimulus action from the Federal Reserve gave markets a sense of optimism.

Bolstered risk sentiment has lifted the Australian Dollar overnight, capitalising on earlier gains made after the release of the RBA’s minutes from its June meeting.

Foreign currency trading can be confusing and nerve-wracking as you go about checking your investments on a daily basis.

Despite a pull-back in optimism surrounding Europe last night the Australian Dollar has held up remarkably well.

Bell FX Currency Outlook: The AUD has continued its firm tone from Friday's trading, as it appears a new coalition government will be formed in Greece between the New Democracy Party and PASOK, giving them control of 161 seats in the 301 seat parliament.

An initial relief rally has sent the Australian dollar higher on this morning’s open, gapping higher and touching above 1.0110 as preliminary forecasts show a pro-bailout government is likely to be formed in Greece.

Amid increased demand for higher-yeilding assets the Australian dollar rose against its US Counterpart yesterday, following global stocks and commodities higher.