Australian dollar coin
A one Australian dollar coin is seen in this picture illustration taken in Sydney, Australia, July 29, 2015. Reuters/David Gray

Bell FX Currency Outlook: The Australian Dollar has traded within recent ranges overnight despite a weak performance from Chinese Stocks yesterday.

Australia: The AUD is currently trading around the USD0.7000 level this morning after Australian markets were closed on Tuesday for the Australia Day public holiday. Most currencies took their direction from moves in the oil price, which reversed direction after comments from the Iraqi oil minister that were supportive of supply reductions. In Australia today the main focus will be Q4 CPI data with the headline CPI forecast expected to rise by +0.2%q/q and +1.5% y/y and underlying inflation of +0.4% q/q and +0.2% y/y. A softer outcome could see the AUD test lower levels on the day.

Majors: The USD was stronger against most of its major rivals on Tuesday night but was weaker against commodities linked currencies. The USD reached the highest level against the CHF since early December and
gained ground against the EUR and the JPY. A number of the commodities-linked currencies were stronger as they got a bit of a lift from US crude oil which regained some lost ground after Monday’s big drop. Looking ahead this week, the FOMC will conclude its two day meeting on Wednesday (Thursday 6:00am AEST) where it’s widely expected by the market to remain on hold. The market will be more interested in the Fed’s post meeting statement for any clues as to when the next interest rate increase will happen.

Economic Calendar 27 JAN

  • AU CPI QoQ/YoY
  • US FOMC Rate Decision
  • AU Skilled Vacancies MoM
  • CH Industrial Profits YoY

Bell Fx

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