Australian Dollar Outlook - February 4, 2014
By Christine Gaylican | February 4, 2014 12:34 PM EST
The AUD rides on a wild spin before the RBA decides on key rates today
Australia: After trading within familiar ranges yesterday, the AUD briefly broke back above USD0.8800, reaching USD0.8834. The AUD spiked
following weaker than expected US manufacturing data.
The Institute for Supply Management's purchasing manager's index showed US manufacturing sector growth slowed sharply, dropping to 51.3 from 56.5 in January.
However the AUD's rally was brief and the local currency settled back below USD0.8800 ahead of today's RBA meeting. While today will be key for the AUD, it is widely expected to leave the cash rate on hold at 2.5%.
Majors: It was a mixed night for currency markets overnight, while equity markets didn't perform well at all. The main catalysts for the mood was the
surprisingly weak US manufacturing data as mentioned above.
The fact that the recent severe weather looked to have an impact on the number didn't help ease the market's reaction with the Dow down -3.3pts to 15,396. European equities also retreated at the end of their session, despite better than expected European ISM readings released earlier.
The EUR did however benefit off the back of the better than expected manufacturing data throughout he Euro-zone, while the GBP failed to gain
momentum, despite a solid ISM reading released in the UK. There is not much in the way of key data releases offshore today.
04 FEB AU RBA Cash Rate Target
US ISM New York
NZ ANZ Commodity Price
For latest pricing, ranges, visit www.bellpotter.com.au
To contact the editor, e-mail:
Most Popular Slideshows
- Prince William & Kate Middleton Caught Flirting In A Countryside Dinner Date [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
- What Happens When You Give Up Sex For 12 Months? – Dialogue With Peter Lynagh – Exclusive
- 2014 US Open: Hottest Female Tennis Athletes [PHOTOS]
Join the Conversation
- Europe, US Next on ISIS’ Hit List, Says Saudi King; Seized ISIS Laptop Reveals Terrifying Bio-Warfare Plans
- ISIS Will Target the U.S. Power Grid, Former CIA Says; Could Tap Other Fellow Extremist Groups to Do the Job
- Russia Massacres Ukrainian Volunteer Battalions—Surviving Members Alleged
- Teachers’ Strike in BC, Canada Stalls 1st Day of School; Labour Dispute Could Last Even After Labour Day
- Julie Bishop: ISIS Is 'Australia's Responsibility'
- 5.5-Inch iPhone 6 is iPhone Air on Sept 19 Release Date: 5 Things to Consider Before Buying
- Pricey iPhone 6 on Release Date Likely but with 3X Retina Resolution & Mobile Payment Service – Reports
- Nexus 6 Release Date Update: Moto X+1 Look Leaked, Nexus X or Shamu Moved to Demo Phase
- Google Nexus 8 Confirmed as HTC T1 aka Volantis/Flounder with Freshly-Leaked Specs & Features – Reports
- HTC One M8 for Windows Vs. Nokia Lumia Icon, The Battle Of Windows Phones
- iPhone 6 On Release Date To Feature Qualcomm MDM9625M LTE, 1GB RAM, Mobile Payment Deal With AMEX, 1334x750 Display