Australian Dollar Outlook - 27 November 2012

By @ibtimesau on

Bell FX Currency Outlook: The Australian Dollar is little changed in quiet trade as markets play a waiting game on developments out of Washington and Brussels.

Australia: The local unit traded in a tight range overnight between 1.0439 and 1.0474 against the Greenback as markets await the outcome of the Eurozone finance ministers meeting in Brussels.

The AUD traded sideways with little movement in major currencies as commodity and equity markets reacted to a lack of progress in both Washington and Brussels, ending the session slightly weaker.

The IMF and Euro zone finance ministers are making their third attempt in as many weeks to agree on releasing emergency aid to avoid a Greek default.

The local calendar is light on today meaning the Eurozone meeting will be the main driver of the Australian Dollar in today's session. The last meeting concluded at 3pm local time so will be a game of wait and see for markets till the meeting does conclude.

Majors: Following on from strong gains across markets only last week, European and US equities opened the week softer as investors remain cautious. Markets are hopeful a decision will be reached on the last tranche of aid needed to keep Greece afloat; with speculation a lower interest rate and an extension on loans shall be provided.

The FTSE declined 0.6% to 5,787 whilst the German DAX was 0.2% lower at 7,292. US equities were also lower as EU ministers failed to reach a decision on Greece's financing. The DJIA ended the session 0.6% lower at 12,936 whilst the S&P 500 declined 0.5% to 1,403.

US Treasuries found support from the EU's lack of decision, rallying modestly during the session. Oil prices fell modestly as signs US budget negotiations have made little progress.

Brent fell 0.2% to USD 110.9 per barrel while WTI Futures also fell 0.2 to USD 87.7 per barrel. Spot gold also ended the session lower on profit taking at USD 1,749 an ounce. A surprise decision was made by the Bank of England overnight with little reaction to appoint Mark Carney as the next Governor of the BOE; Mr Carney is the current Governor of the Bank of Canada. Tonight will see the release of UK National accounts along with US manufacturing, durable goods and house prices.Economic Calendar27 NOV AU BALANCE OF PAYMENTSEC OECD ECONOMIC OUTLOOK RELEASEDUK GDP (QOQ/YOY)US CONSUMER CONFIDENCE

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