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 trading back above USD0.7600 this morning after it initially lost around half a US cent following the latest terrorist attacks in Brussels.

Australia: Yesterday’s speech by RBA Governor Stevens came and went with not much in it for the AUD. In his speech he sounded comfortable with the state of the domestic economy, noting that the “the local economy has been improving” and adding that “in the case of business surveys, better conditions seem generally to have continued in the early part of 2016, though labour market data have been more ambiguous”. The AUD traded within a fairly tight range until news emerged of two terrorist attacks in Brussels. The AUD lost around half a US cent to around 0.7560 but these loses were soon reversed and the AUD was trading back above 0.7600. Today we have Skilled Vacancies data for February due at 11:00am AEDT but it’s unlikely to attract much attention.

Majors: The USD gained ground against most of the majors Tuesday night following news of the Brussels attacks. The moves reflecting concerns the incidents could hit the Eurozone’s economy and boost efforts to break up the European Union. The attacks sent investors into safe haven assets with equity markets falling and the price of gold rising. Explosions hit Brussels’s international airport and a subway station killing more than 30 people. These events overshadowed any data last night despite the PMIs for France, Germany and the Eurozone being somewhat reassuring. Tonight the US New Home Sales report for February is due along with a few Fed speakers.

Economic Calendar 23 MAR

  • AU Skilled Vacancies MoM
  • US Fed’s Bullard (voter) speaks on Economy and Monetary Policy in New York
  • US New Home Sales
  • EC Consumer Confidence

Bell Fx

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