Bell FX Currency Outlook: The Australian Dollar has opened stronger this week after a weak batch of US economic data has cast some doubt about the economic recovery in the US.
100 dollar bank notes and 10,000 yen notes.
The University of Michigan consumer sentiment index showed consumer confidence in the US fall from a six-year high in August, while housing starts and building permit figures for July were weaker than expected.
The AUD squeezed higher against the USD following the data and has opened this morning around USD0.9188 after touching just above USD0.9200.
For the week ahead we have the RBA's minutes being released tomorrow, while Wednesday we have the FOMC minutes from their July meeting as well as non-official China PMI for August.
While the direction of the AUD over the long-term still looks as though it will head lower, economic risks offshore may just
see the AUD higher in the short-term.
Majors: Elsewhere, the NZD held up week despite news of earthquakes in the Wellington region, the USD/JPY closed marginally higher at Y97.58, while the GBP and the EUR were both around 1% weaker.
Gold added another US$10, while oil was higher on the back of the riots in Egypt. Industrial metals performed well on expectations that the global economic recovery would increase demand. Iron-ore was the only exception falling - 2.3% to $137.9 per tonne. On the day today we have New Motor Vehicles for July, while in Japan they have trade balance numbers being released for July.
19 AUG AU New Motor Vehicle Sales July
NZ Performance Price Index July
JN Trade Balance July
CH Foreign Direct Investment July
For latest pricing, ranges, visit www.bellpotter.com.au
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