Bell FX Currency Outlook: Australian dollar edges higher ahead of US Fed Chairman speech.
Australia: The Australian dollar has opened marginally higher against the Greenback after trading in a tight range in what was a relatively quiet overnight session. With little released on the data front to drive price action, markets will focus their attention this morning on US Fed Chairman Ben Bernanke who is due to speak.
With increasing speculation the Fed could end its fourth round of quantitative easing as early as this year, any support that the QE4 program will last out the year or longer should provide some further support for the AUD.
Domestically yesterday saw the ANZ job advertisements continue to weaken for December, declining 3.8% m/m; the lowest read since January 2010.
ABS employment figures are due for release this Thursday where an increase in the unemployment rate is expected after its surprise decline seen in November.
Australia's housing finance approvals also declined in November, falling 0.8% and ending a run of three consecutive months of gains. Domestically today there are no potential market moving data due for release.
Majors: The Euro has hit an 11 month high above 1.3300 against the US dollar, as prospects of an interest rate cut in Europe fade. Weaker
industrial production for the Eurozone did little to dampen the block currency's strength.
Tonight will see a plethora of European prices output and trade data due for release in the London session. After a fairly directionless night, equity markets ended the overnight session little changed. US Equities were mixed as investors took profits ahead of corporate earnings due.
The DJIA ended 0.2% higher at 13,510 while the S&P 500 ended down 0.1% at 1,471. European equities were also mixed with the German DAX ending up 0.2% at 7,7730 while the FTSE fell 0.2% ending the session at 6,108.
Oil prices were also mixed with Brent gaining 0.8% at USD 111.9 per barrel while WTI futures ended unchanged at USD 94.2 per barrel. A stronger US dollar saw metals lower, although moves were capped ahead of Bernanke's speech due this morning.
Tonight will see Retail sales for the US due for release, along with German GDP.
15 JAN US Producer Price Index
EU euro-Zone Trade Balance
UK Consumer Price Index
GR Greece to Sell Bills
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