Australian Dollar Outlook - Feb. 10, 2016
Bell FX Currency Outlook: The Australian Dollar is siting above USD 0.7050 as the markets eagerly anticipate US Federal Reserve chair Janet Yellen’s testimony to Congress tonight.
Australia: The AUD has held up reasonably well in the face of global market volatility. Overnight, the AUD fell below USD 0.6980 briefly before rebounding and settling around current levels. Volumes are low as most
investors (and economists) wait to hear the US central bank head’s comments tonight amid continuing global volatility and fears of another world recession. Financial markets will most likely be driven by two things
today being the performance of equities and of course Yellen’s testimony. Despite the volatility abounding as we speak, cautious optimism is a chance tonight, and this will most likely supporting the USD and may see
further downside on the AUD. Today, Westpac Consumer Confidence data is unlikely to be market-moving.
Majors: Overnight, the USD/JPY held onto Asian session declines and EUR/USD rallied to 1.1300 despite German data weakness. As mentioned, sentiment towards risk assets remained “skittish”, with weakness in bank stocks contributing to further falls in European bourses. Fixed income had something of a breather during the European session. Weakness in oil prices dragged down the CRB index, while gold prices rose. Another day of heightened volatility is expected as concerns over global growth prospects remain elevated. Oil remains susceptible to further weakness as the market digests yesterday’s data.
Economic Calendar 10 FEB
- US Fed’s Yellen to appear before House Financial Services
- Committee
- AU HIA new home sales
- US Monthly Budget Statement
- UK Industrial Production MoM/YoY
Bell Fx
[Kick off your trading day with our newsletter]
More from IBT Markets:
Follow us on Facebook
Follow us on Twitter
Subscribe to get this delivered to your inbox daily
