The Australian dollar has started the week a touch higher than where it closed on Friday, opening trade at 94.52 US cents this morning. Whilst the Aussie opened a touch higher, the Euro, Pound and Yen started the week below were we finished on Friday evening where the US dollar closed out the week well supported. What helped the Greenback was outperforming manufacturing data which showed the highest read since May of 2011, and 6 straight months of expanding pace. The Pound lost a cent to the US dollar through Friday and was down just under 3 cents through last week’s trading.
We have a rates decision tomorrow afternoon putting a heavy focus on the Aussie dollar with traders watching for any change to the existing statement template with rates to remain as is. Later in the week we have jobs data which is expected to show a rise to 5.7% with an emphasis yet again on the participation rate. The weeks ending will swing back to the US as we see GDP data and then Nonfarm payrolls to close the week out likely to be the second lowest read of the year following the US funding dramas last month.
The start of trading week will undoubtedly be focused in the Aussie dollar with retail sales data up today expected to come in at a solid 0.5% and ANZ job advertisements which had its 3rd positive read for the year last month. A Japanese bank holiday we likely drop much of the currency volumes once we get these local releases.
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
