Bell FX Currency Outlook: The Australian Dollar fell back to the low .9100's after trading above .9200 yesterday as concerns about the timing of the US Federal Reserve's tapering program weighed on our local currency.
An employee of the Korea Exchange Bank counts one hundred dollar notes at the bank's headquarters in Seoul in this file photo.
Australia: Markets are still fixated with the timing of the tapering process which many analysts believe will begin in September. A further clue to the timing of this is likely to be revealed when the recent FOMC minutes are revealed on our Wednesday night. In the meantime we will see today the release of the RBA minutes at 11:30 AEST of this month's board meeting.
Equity markets in the US were again weaker overnight continuing the trend set last week which was the poorest week we have seen in a while.
Yesterday new vehicle sales in Australia for July were 3.5% lower as compared to June but 3% higher as compared to last year's July figures.
We don't expect the RBA minutes to reveal any new line of thinking after the recent Quarterly Statement on Monetary Policy although the minutes will reviewed by analysts for further insight into any change in the RBA's thinking.
On Thursday we will see the non-official PMI data from China which can always produce some surprises.
Majors: The EUR kicked up overnight versus the USD after the German Bundesbank said in their monthly report that the next move in the cash rate in Europe might be upwards if inflation pressures start to mount.
The EUR moved higher versus the USD which translated into a lower AUDEUR cross rate by close to 100 points.
In Japan yesterday the trade figures for July were released with imports rising 19.6% yoy which was a surprise to most analysts while exports rose 12.2% in reaction to the generally weaker JPY over the last year.
Today in New Zealand the Governor of the NZ Reserve Bank will be speaking and is likely to give the market an idea on how the bank may try and rein in new mortgage lending to new borrowers on higher LVR (Loan to Valuation Ratios). The RBNZ is
concerned with the rapid appreciation of house prices especially in the Auckland market.
20 AUG AU RBA Policy Meeting -August Minutes
JN All Industry Activity Index MoM Jun
US Chicago Fed Nat Activity Index Jul
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