Australian Dollar Outlook - 13 August 2014

By @ibtimesau on
U.S. one-hundred dollar bills are seen in this photo illustration at a bank in Seoul August 2, 2013. Picture taken August 2, 2013.
U.S. one-hundred dollar bills are seen in this photo illustration at a bank in Seoul August 2, 2013. Picture taken August 2, 2013. Reuters

Bell FX Currency Outlook: The Australian Dollar remained in a tight range during a quiet session.

Australia: The AUD saw only a 30 point range over the last twenty-four hours as volatility remains subdued.

Yesterday the NAB released its business confidence and conditions figures, with both showing a rise on the previous month and conditions are currently at the highest level since March 2010. There was more good news in the composition of the numbers, with all components showing improvements.

However this good news failed to make a significant impact on the AUD, with only a small spike over the number which retraced back to 0.9250 during the afternoon.

Overnight the AUD was a little stronger, touching a high around 0.9275. Today sees quite a data-heavy session, with Westpac consumerconfidence (which the RBA is watching with interest) and wage price index released domestically, while in Asia, Japanese GDP and a series ofreleases out of China (industrial production, retail sales and urban investment) will be keenly watched.

Majors: The main focus overnight was some very poor German ZEW data and also geopolitical tensions once again making headlines. TheEUR fell again to near its nine month low reached last week as both the economic sentiment and current situation numbers in the ZEW surveydisappointed. This situation once again raises concerns over the outlook for Europe, as inflation remains subdued. The USD was slightly higherafter a better than expected NIFB business optimism index reading and the situation is Russia might also have seem some buying of USD.

The main concern last night was over the 280 truck aid convey heading to the Ukraine boarder and whether the Russians will try and cross it or hand their cargo over to the International Red Cross. There are several data items to keep an eye on tonight, with German CPI, UK employmentfigures, BOE quarterly inflation report, Eurozone industrial production and US retail sales all being released.Economic Calendar13 AUG AU Westpac Consumer Con SA MoMAU Wage Cost Index QoQ/YoYJN GDP SA QoQGE CPI MoM/YoY

For the latest pricing, ranges visit www.bellpotter.com.au

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