Bell FX Currency Outlook: The Australian Dollar has recovered slightly, after hitting a low of USD0.8660 over the long weekend.
Australia: week last week, the AUD went into the Australian Day Long Weekend on the back foot, sold off against its major counterparts followingweaker Chinese data and comments from a RBA board member.
The AUD hit a low of USD0.8660, its lowest level since July 2010. However we saw investors take this opportunity to lock in some profits on the latest fall, driving the AUD back above the USD0.8700 level in offshore trade yesterday. Today we have the release of NAB's business survey forDecember. Most are expecting business confidence to have declined.
Offshore this week the market will look towards the RBNZ and FOMC policy decision on Wednesday and Thursday.
Majors: US equities were mixed while European markets were generally softer overnight. The Dow rose 0.3% while the Nasdaq traded lower by0.4%. There was little in the way of data releases with weaker than expected US house sales against an upbeat German business confidencereport. The USD was relatively stable against it major trading rivals, while the JPY stabilised.
Oil prices were lower on worries about the weaker growth prospect in emerging markets, while gold fell 1.3% to USD1,254.10 per ounce, ahead of the Federal Reserve policy meeting tomorrow. Also ahead this week we have GDP figures being release in the UK, Durable Goods orders in the US and Chinese Manufacturing PMI for the month of January.
Economic Calendar28 JAN AU NAB Business Confidence/ConditionsUK GDP QoQ/YoYUS Consumer Confidence Index
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