The US dollar took a backseat yesterday after Chinese trade balance data had a ripple effect on the European and US sessions.
The stability of yesterday’s Chinese CPI data also added confidence to the Australian dollar which had an uninterrupted climb to 92.40 US cents and sits about 15 pips shy from there as we wait for Australian equity markets to open. The Euro was well supported also with a surprise consumer confidence turnaround helping it surge to 1.3280 USD with it being the first positive sentiment read in over two years. The Pound also followed suit putting on nearly a cent versus the Greenback from yesterday’s open helped by U.K. Chancellor of the Exchequer George Osborne’s assertion that the economy has turned a corner.
As the Syrian strikes debate gets pulled in separate directions from comments from Russia, John Kerry and Assad’s interview with Charlie Rose the volatility in gold trading took a break through yesterday sessions. Gold sits at 1388.81 USD an ounce unmoved from the range it has been in since the start of Friday’s US session.
The local trading day will yet again include data from China with both Industrial production and retail sales closely watched. We also have data from home with NAB Business Confidence always factored into to longer term AUD views. The lack of US data again tonight will no doubt be a supporting influence for risk currencies if the Syrian strikes issue remains in the current holding pattern
