Australian Dollar Forecast Nov 20

Signs of a subdued economic recovery and a reassessment of the pace of the RBA's monetary tightening continued to weigh on the AUD last night.

The AUD fell over one US cent overnight to a low of USD0.9138 before recovering slightly too just under USD0.9200.

Some sharp falls in equity markets also added to the pressure and saw investor's appetite for risk diminish and seek comfort in the "safe haven" USD and JPY.

AUD/JPY was sold down to nearly 81.00 after strong selling came out of Japan.

With no domestic data being released today the AUD is expected to trade within recent ranges, potentially drifting higher with a lot of buying interest already seen this morning after the dip last night.

Majors: The USD was broadly stronger against most of the major currencies Thursday night as investors questioned the strength and the pace of the global economic recovery.

Weaker equity markets and slumping commodity prices also pushed investors back into the USD and JPY.

The EUR slipped from above $1.4950 to below $1.4900, while the GBP lost almost a cent following some dismal economic data.

Major indexes tumbled about 1%, including the DOW which lost 94 points but ended off its lows.

Although it's evident from recent data around the globe that the recovery from recession is underway, people are still questioning it and how long it's taking.

This is leaving investors confused and hesitant to trade out of recent trading ranges on most currencies.

With no major economic data due tonight we may just see the majors trade sideways as investors remain wary about entering riskier positions ahead of the weekend.

Provided by bellfx.com.au

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