Australian Dollar Outlook - Feb. 24, 2016

Bell FX Currency Outlook: The AUD is traded slightly lower today after an impressive rally on Tuesday.

Australia: The Australian Dollar is currently trading around the UD0.7200 level after recording a high of USD0.7259 yesterday. A recovery in oil and commodity prices were the main drivers for the rally in the currency Tuesday in the absence of any local data. Overnight we saw a pullback in oil, commodities and equities which halted the AUD’s rise for the time being. On the day we have a few pieces of data being released; The ABS wage price index for the December quarter is due along with Construction work done. Neither piece of data is likely to be market moving. The market will be more interested in a speech from Fed vice Chair Stanley Fisher at the energy industry conference which is underway in Houston, USA. His speech is slated for 12.30 AEST.

Majors: The GBP and the EUR were both lower against the USD, bruised by poor German economic numbers and fears of a British exit from the European Union. The German survey of business sentiment fell
for a third straight month, following weak Eurozone purchasing manager’s surveys on Monday. Concerns over the economic impact of a UK departure from the EU also continue to weigh heavily on EUR. US stocks
edged lower as commodity prices retreated finishing around 1% lower while European stocks were also lower ending their session 1.5% lower. Along with the Fed’s Vice Chair Stanley Fisher speaking in the US, tonight
we have the Fed’s Bullard speaking in New York and Kaplan speaking in Dallas. In terms of data in the US, Total Net TIC flows for Jan, New Home Sales also for January are due to be released.

Economic Calendar 24 FEB

• US Fed’s Fisher (v) speaks in Houston
• JN PPI Services YoY
• AU Skilled Vacancies MoM
• US Markit US Services/Composite PMI

Bell Fx

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