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 is slightly weaker this morning as the USD continues to grind higher on
interest rate expectations.

Australia: After a fairly uneventful day locally yesterday, the AUD is currently trading within recent ranges as markets tread water ahead of the Veterans Day holiday in the US tonight. The AUD has traded to a high of USD0.7064 and a low of USD0.7017 over the last 24 hours. Weak data out of China yesterday failed to have a real impact on the AUD but the market is still watching today’s Chinese growth numbers closely. Also of note is the monthly Westpac Institute consumer sentiment survey at 10.30AEST. This was conducted after the RBA left rates on hold at its November meeting. Also later today, Japan releases its machine tool orders numbers for October.

Majors: The USD was stronger against most of the majors overnight with the EUR dropping to a new six-month low as investors braced for lower monetary policy in the Euro-zone and higher US interest rates next month. The EUR continued its recent decline overnight when the European Central bank indicated it was prepared to ease monetary policy further at its December 3rd meeting through augmenting its massive asset-purchase program or by cutting interest rates. It is expected that ECB President Mario Draghi will tonight once again hint at further easing at next months meeting during his speech at the Bank of England Open Forum. Tonight we have a labour market report out of the UK being released as well as the BOE’s Mark Carney speaking on market reform. There is no data of the US tonight with US markets closed for the Veterans Day holiday.

Economic Calendar 11 NOV

  • CH Retail Sales YoY/YTD
  • CH Industrial Production YoY/YTD
  • AU Westpac Consumer Confidence Index/MoM
  • EC ECB President Draghi speaks at BOE event in London

Bell Fx

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