The Australian dollar founded itself under pressure yesterday, with a combination of drivers pushing the commodity currency down towards key technical support at 1.0220.
In what proved to be a rollercoaster ride for the Australian dollar on Friday the local unit gyrated between losses and gains in an overall volatile session.
The Australian dollar has fallen overnight to its lowest level in over a month against the Greenback whilst also declining to a nearly two-month low against the Euro.
The Australian Dollar has remained flat for most of the past 24 hours with investors becoming seemingly obsessed with the notion of further Stimulus out of the US Federal Reserve.
In a report released yesterday the sale of new homes for the month of July declined 5.6 percent, emphasising that the housing segment remains one of the weakest links of the local economy.
Recent risk appetite has cooled slightly so far this week, pulling the Australian dollar lower to its weakest level against the Greenback in over a month.
Bell FX Currency Outlook: Weaker Chinese data helped push the AUD below 1.0400 on Friday night but the ongoing threat of more central bank stimulus has kept the AUD above the 1.0400 level this morning.
The Australian dollar finished last week overall weaker after falling to its lowest level in four weeks against its US Counterpart on Friday.
The Aussie Dollar found a little momentum early on in its local session and rallied from support at 1.0500 to highs near 1.0540 by lunchtime.
The Australian dollar has broken back above $1.05 overnight as the US Dollar weakened following the FOMC minutes which highlighted the Fed’s willingness to act on quantitative easing should the need arise.
The Australian Dollar opens around 20-30 point higher this morning when compared with 24 hours prior, as risk sentiment remains supported ahead of European meetings this week.
Australia: The AUD has been the beneficiary of global central bank and institutional buying in recent weeks. This has been due partly to Australia's relatively higher interest rates and yields on Commonwealth and state government bonds as compared to other developed economies.
The Australian dollar finished the week lower on Friday, posting a 1.3% loss overall as encouraging economic data from the United States helped reduce speculation the Fed will intervene with further stimulus.
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The battle with $1.05 has continued for the Australian dollar over the past 24 hours and a lack of momentum saw 1.0475 banked in local hours before a switch offshore improved the mood.
A former manager of a subsidiary of the Reserve Bank of Australia (RBA) alleged that a central bank account was set up in the U.S. for the payment of bribes which is a violation of anti-corruption laws in the United States.
The Australian Dollar opens back above 1.0500 this morning, albeit by the finest of margins after earlier Greenback strength took the pair to levels below 1.0460 in European hours.
Recent shedding of the Aussie continued yesterday and by early afternoon in Asia the local unit was looking heavy just above 1.0500, despite NAB’s survey showing business confidence improved slightly throughout the month of July.
The Australian dollar started feeling a little acrophobic yesterday, and after trading near four and a half month highs for well over a week now the local unit has slipped lower.
Bell FX Currency Outlook: The Australian Dollar continued its firm tone this morning on the expectation there will be more bank stimulus in the US, ECB & China.
The Australian dollar lost ground against its US Counterpart on Friday after disappointing Trade Balance figures in China dampened demand for the higher yielding asset.
The Australian was lifted higher yesterday after a robust jobs report showed Australian employers added 14 000 jobs in July. comfortably beating expectation.
In a very uneventful day for the Australian dollar investors have seemed unwilling to take the higher yielding asset above the somewhat stubborn area of 1.0560 against its US Counterpart.
The Australian dollar continued its upward run yesterday reaching an afternoon high of 1.0602 against its US Counterpart after the RBA, as widely expected kept the official cash rate unchanged 3.50 percent.
The Australian dollar rallied to a near 4 month high against its US Counterpart in early morning trade overnight as riskier backed assets gained on hopes that the ECB will shortly take decisive action in European Bond Markets in an attempt to lower borrowing costs for struggling nations such as Italy and Spain.
Bell FX Currency Outlook: The Australian Dollar has maintained its firm tone this morning, after US jobs data on Friday night were higher than expected, fueling a jump in major equity indices in Europe and the US.
The Australian dollar enjoyed another strong week against its US Counterpart, well supported by stronger than expected retail sales as well as the June Trade Balance which showed an unexpected small surplus.
The Australian dollar opens lower this morning following what was a rollercoaster ride of inflated expectations and disappointment following a lack of action taken by the ECB.
A smaller than expected expansion of the Chinese manufacturing sector caused share markets to slip during Asian hours and the Australian dollar lost 20 points on the initial release.
The Australian dollar has held onto most of its gains since markets rallied on Friday; however caution ahead of some key risk events in the second half of this week has seen it dip back below 1.0500 in the early hours of Wednesday morning.
