Australian dollar notes and coins can be seen in a cash register at a store in Sydney, Australia, February 11, 2016.
Australian dollar notes and coins can be seen in a cash register at a store in Sydney, Australia, February 11, 2016. Reuters/David Gray

Bell FX Currency Outlook: The Australian Dollar has rallied almost 1 US cent overnight, currently trading around USD0.7630.

Australia: After treading water for much of the day yesterday, the AUD has rallied through USD0.7600 following cautious remarks from the US Federal Reserve. The US Fed Chair Janet Yellen said that the US central bank still envisions a gradual pace of interest rate increases in light of global pressures that could weigh on the US economy. She stated not only was caution in normalisation exceptionally warranted at the moment, but also that the Fed has room to add stimulus. With such a cautious stance, the market is now not expecting a US interest rate hike in April. The comments weighed heavily on the USD. It is a quiet day of data releases both domestically and in offshore markets. In Australia we have the weekly consumer confidence reading and NAB releases its online retail sales index.

Majors: The Greenback is trading lower against its major peers following dovish comments from its Federal Reserve on Tuesday. Fed Chair Janet Yellen’s comments on Tuesday echoed comments from the last Fed meeting in mid-March which again surprised investors and sent the USD lower. There has been a number of speeches since then however which had reignited hopes that the central bank may raise interest rates at its April or June meetings but that now looks unlikely. These latest comments come ahead of a data heavy week which will conclude with the highly anticipated Non-Farm Payrolls report on Friday.

Economic Calendar 30 MAR

  • US Fed chair Yellen speaks to Economics Club of New York
  • AU ANZ Roy Morgan Weekly Consumer Confidence Index
  • GE CPI MoM/YoY
  • JN Industrial Production MoM/YoY

Bell Fx

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