The Australian dollar continued on from its performance the following the solid nab business confidence read and the ANZ Job Advertisements which crept back into a positive read just. The Aussie traded up to 94.84 US cents during the European session and we did see many USD cross hit highs at that point in the session including the Euro which briefly traded past1.36 USD. We did see some pull back to the US dollar through its session as Obama tone changed in regard to getting the debt ceiling resolved even if it’s only a temporary reprieve. The US dollar managed to improve from the 96.57 Yen low it hit this time yesterday and traded back through 97 Yen before easing back again this morning.
The Canadian economy was again met with disappointing data which saw the Loonie struggle in trade overnight. Housing starts were up, but the Trade balance deficit widened to 1.3 billion with the previous months deficit also being negatively revised. The US dollar surged up 50 pips to 1.0372 CAD and the Australian dollar approached a 4 month high to peak at 97.87 CAD during the European session.
Today’s local session sees Westpac Consumer Sentiment due at 10.30am this morning but we don’t expect any significant movements on the currency front. The Bank of Japan’s Monetary Policy meeting minutes are also likely to have a muted effect and should to reinforce the straight bat that they played last Friday
Joel Murphy
www.pepperstone.com Joel Murphy is a currency analyst and market commentator for Forex Broker Pepperstone and he regularly features on Sky Business News Australia. He has worked in both retail and institutional Forex for last 8 years and completed a Bachelor of Commerce and a Bachelor of Arts from Monash University
