Australian Dollar Outlook - Feb. 3, 2016
Bell FX Currency Outlook: The Australian Dollar is lower this morning as global oil and equities slide.
Australia: The AUD is trading lower this morning after having spiked through USD0.7100 on the back of the RBA announcement yesterday. Initially the AUD rallied on the “no change” announcement however it
started to pullback as the market digested the hints about the uncertainty the RBA has about the global and domestic economic outlook. Overnight another drop in oil prices and weaker equity markets didn’t help the AUD with the overnight low through USD0.7050. On the day, we have December Trade Balance and Building Approvals due to be released at 11:30 AEST. The market will be watching to see what effect the slowdown
in China has had on our trade figures with the market expecting a trade deficit of $2450m.
Majors: The USD and JPY were stronger overnight as lower oil and stock prices led to a reduced appetite for risk. A steep fall in crude prices and downbeat results from some of the world’s biggest oil producers sent
stocks sliding, with the Dow Jones Industrial Average falling 295.64 points or 1.8%. A steep drop in quarterly profits from both Exxon Mobil and BP showed that even the most resilient companies are struggling in this
environment of sharply lower oil prices and this is worrying investors. Ahead tonight in the European session the final estimates of the services and composite PMIs are released for the UK along with retail sales figures
in the Eurozone. In the US they have ADP employment and the ISM nonmanufacturing index that is expected to show little change from December’s figures.
Economic Calendar 03 FEB
- AU Trade Balance / Building Approvals
- CH Caixin PMI Services/Composite
- NZ Unemployment Rate
- US ISM Non-Manufacturing
Bell Fx
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