Bell FX Currency Outlook: The Australian Dollar is firmer today, rallying overnight as the appetite for riskier assets returned to the market.
Australia: After trading around USD0.8950 for much of yesterday's local session, the AUD broke back above USD0.9000 overnight as risk appetite took over once again. With no news locally yesterday, the AUD drifted lower towards USD0.8930 but by the European session was slowly gaining some momentum back towards USD0.8990. Higher Gold prices and a rise in US equities overnight saw the AUD outperform against most of the major currencies, hitting a high of USD0.9049. With no major data releases due on Tuesday we expect the AUD to hold onto its overnight gains but its likely to trade within a narrow range.
Majors: Global equity markets made solid gains overnight with US indices up 1.1%, while European markets averaged a 0.6% gain. Spot gold rose 1.1% to USD1,338.4 per ounce, closing in on a four month high. European Data was also positive with German business confidence improving by more than expected in February. Most major currencies outperformed the USD, the EUR regained some lost ground rising from a low of 1.3709 to around 1.3740. Tonight, US Consumer Confidence takes the spotlight, it's expected to ease in February to an index of 80.0 from 80.7 in January. While in Europe, German final Q4 GDP figures are expected to confirm growth at 0.4%.
- 25 FEB US Consumer Confidence Index
- US House Price Index MoM
- GE GDP QoQ/YoY
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