dollars
A U.S. dollar note (bottom) is pictured alongside other currencies including (L-R) the Australian Dollar, Singapore Dollar, Korean Won and China's Yuan in this picture illustration taken in Washington, October 14, 2010. Reuters/Jason Reed

Bell FX Currency Outlook: The Australian Dollar has opened lower this morning after a mixed session overnight.

Australia: The AUD was looking well on its way to USD0.7200 yesterday after performing well the night before. However mixed sentiment overnight saw a pullback, back through the USD0.7100 level. Equity markets were mixed with the European indices ending marginally lower, while in the US, markets played catch-up following the long-weekend. The AUD traded to an overnight high of USD0.7182 before retreating back to USD0.7082. The USD held up well despite some disappointing data, while the GBP lost ground. On the day we don’t have much in terms of local economic data.

Majors: As mentioned above the USD held up well on Tuesday night, rising against the EUR, CHF, GBP and AUD. The JPY was the exception, strengthening against the USD following a two day decline. Empire State
manufacturing data was released with results showing the index rose slightly in February to -16.6 from -19.4 but still below consensus of -10. Despite the soft data the USD still managed to hold onto its gains. News in
oil emerged overnight with Russia, Saudi Arabia, Venezuela and Qatar all agreeing to freeze oil output at January levels as long as other producers participate. Oil rose on the back of this news but the rally quickly faded as it became apparent the freezing news was merely symbolic. Looking ahead it is a fairly quiet on the data front with no major data releases in both the US and Europe.

Economic Calendar 17 FEB

  • US U.S. Fed Releases Minutes from Jan. 26-27 FOMC meeting
  • US Industrial Production MoM
  • UK Jobless Claims Change
  • AU Westpac Leading Index MoM

Bell Fx

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