US GDP data boosts greenback

The Australian dollar’s struggle continued from late in the local session yesterday continued with losses through the European session and it shed about 40 pips through the time versus the US dollar.  The US session was no better after the AUD had retraced about 10 pips, US quarterly GDP was released which came in at 2.5% annualised and re-sparked the Aussie’s downward slide.  The release was ahead of market estimates and on the close in New York the Australian dollar was at a low of 89.03 US cents.  Gold trading was broadly in line with the AUD performance and it also has limped down to 1404 USD an ounce, down $28 for the high it was trading at nearly two days ago. 

 

Whilst the Australian dollar has been very steady against the Yen across the last 2 days as chances of an early US strike in Syria ease, the US dollar has continued to make up significant ground.  The greenback is now up at 98.36 Yen, about 70 pips away from last week highs.  Today’s session is key for the Yen, with Tokyo and Japanese CPI up for issue in the next few minutes.  Expectations are for an annualised increase of 0.4% and 0.6% respectively. 

 

The local trading today will likely be boosted from global equities in the green overnight and easing Syria concerns with the US not prepared to go alone without allied support.  Australian Private Sector Credit is up at 11.30am and is likely to continue its current mildly bullish trend.   The data dump continues on the afternoon with German retails sales, leading into European unemployment rate early tonight.