Australian Dollar Outlook - 6 February 2013
By Christine Gaylican | February 6, 2013 11:08 AM EST
Bell FX Currency Outlook: The Australian Dollar has regained some lost ground overnight as the market digested the Reserve Bank of Australia's decision to leave the cash rate unchanged yesterday at 3.00%.
Australia: The AUD/USD fell to of 1.0370 yesterday, but found support ahead of the low of 1.0360 last week, and rebounded early today amid a rally on US stock markets, with the Dow Jones moving close to a fresh five-year high.
This risk-seeking environment (here as well locally with sizable moves out of cash into equities) is lending support to the AUD.
The RBA Board's statement suggested the Bank is comfortable in "assessment mode", and is waiting to see whether the policy easing to date is sufficient for a pick-up in the non-mining sectors of the economy, to offset the expected moderation in mining investment.
Watch for incoming labour market data and the outlook for non-mining investment as a real guide for the cash rate from hereon.
The CAPEX survey (28 February release) is being touted as having significant importance, as it includes initial estimate
of investment intentions for businesses in 2013/14.
In Australia today, the main local driver for our AUD will be the December retail sales data which is released at 11:30 AEST.
Nominal retail sales are expected to have remained modest but better than the very weak outcomes in the previous two months.
Expectations for Q4 retail sales volume is for a marginal increase of ~ 0.2% for the quarter.
Majors: The US Dollar was slightly weaker following a risk-supportive print in the US non-manufacturing ISM data for January. The EUR was strong against most currency pairs, with a broad pick-up in the euro zone services PMIs seeing the previous day's unwinding of EUR crosses checked.
An ECB Governing Council member commented that the EUR reflects economic fundamentals and this was taken as supportive as it implied no official interference in the market.
Elsewhere, better market sentiment saw European and US equity markets record solid gains overnight with economic data providing support.
For latest pricing, ranges, please visit www.bellpotter.com.au
To contact the editor, e-mail:
Most Popular Slideshows
- Flight MH17 Attack: Russians Claim 'Putin A Terrorist,' Memorial at Dutch Embassy Overflows [PHOTOS]
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Ellen DeGeneres Caught Cheating with Mutual Friend Before Portia de Rossi’s Rehab – Reports [PHOTOS]
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
Join the Conversation
- Ideological Support Swells for Scottish Independence
- Malaysia Airlines MH17: Dutch Wants Putin's Daughter Maria Deported to Russia From Holland
- New Zealand and China Decide to Boost Defence Ties
- Gaza Crisis: 695 Dead & 4,500 Injured, UN Accuses Israel of War Crimes
- Scientists Warn MERS Virus Could be Spread Airborne
- Samsung Galaxy Note 4 Apps Leak Online, Five Fresh Features to Expect from the Android Smartphone
- Moto 360 Price Speculations, Key Features, Strategic Release Date, Design: A Watch That is More Than Just Time
- Windows Phone 8.1 Update Rollout: 20 Nokia Lumia Phones Eligible and 13 New Features to be Added
- HTC Google Nexus 8 Release Date Imminent with New Nexus 7 Deals, Two New Tablets Soon
- Three New Moto G Successors Spotted in FCC Document Dubbed Moto G2, Moto M and More --Reports
- iPad Air 2 Release Date Will Skip IGZO Panel; To Rollout with Super-Slim iPad Mini Air
- Upcoming iPad Mini 3 Could be 30% Thinner and Likely be Called iPad Mini Air; Apple Q3 Results Show 9% Decrease in iPad Sales