Australian one dollar coins
A handful of Australian one dollar coins is shown in Sydney, February 18, 2004. Reuters/Tim Wimborne

Bell FX Currency Outlook: The Australian Dollar is unchanged this morning, treading water as the market awaits key Chinese trade figures.

Australia: The AUD has traded within familiar trading ranges over the last 24 hours as investors remain wary heading into Chinese Trade balance data being released today. There is concern that growth is slowing in China and that today’s figures will print on the weak side. Over the last week, China’s repeated efforts to stabilise its financial markets is helping the AUD from falling through USD0.6900. However a weak trade number today could see the AUD test its recent low of USD0.6928. We have Australian job Vacancies for November due for release today but the Chinese data will take centre stage.

Majors: The USD was stronger against most of the majors overnight. The GBP sank to fresh 5-year lows as weak economic data in the UK raised concerns that the Bank of England may hold off from increasing interest rates this year. Stronger than expected US employment data out on Friday night has increased expectations that the Federal Reserve will raise rates at its March meeting after increasing rates for the first time in nearly a decade before Christmas. This continues to support the USD particularly against the GBP and the EUR. Ahead tonight we have EU Industrial Production, the Fed’s Beige Book and speeches from the Fed’s Rosengren and Evans.

Economic Calendar 13 JAN

  • CH Trade Balance
  • CH Esp[orts/Imports YoY
  • US Monthly Budget Statement
  • AU Job Vacancies

BellFx

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