Australian Dollar Outlook - Sep. 15, 2015
Bell FX Currency Outlook: Australia changed its PrimeMinister yesterday, with Malcolm Turnbull taking over from Tony Abbott. The AUD jumped above 0.7100 in offshore trade as investors appeared to welcome the news of the spill.
Australia: Last night Malcolm Turnbull ousted Tony Abbott as Federal Liberal leader, winning a partyroom ballot 54-44. He’ll besworn in as prime minister on Tuesday. Will he be the man to boost confidence and spur business investment? Julie Bishop comfortably won a vote to remain as deputy prime minister. The AUD currently trading at around 0.7147, up from yesterday’s 0.7090. Early this morning the AUD peaked above 0.7150, a 2-week high. Market seems to be in wait and see mode ahead of the FOMC, AUD the outperformer over the last 24 hours and USDJPY a touch lower in line with equities. Things are getting a little more interesting today, but with the FOMC hanging over markets, it might be difficult to establish a trend. Today’s RBA minutes are not expected to produce any new information, particularly after theRBA speeches last week.
Majors: The fact that, in the G3, there is scope for easing from two (ECB, BoJ) should balance against the tightening of the major (FOMC). True, not all central banks are now equal, with the FOMC having a broader reach but as these central banks become active again, in opposite directions, there is the potential for greater market movement. And not all of it negative. This month is possibly too early for all three, and their decisions are no longer independent of each other, but they do have implications for markets. Thus, today’s BoJ meeting may be more interesting thanin the recent past.
Economic Calendar 15 SEPT
- AU RBA September Meeting Minutes
- AU New Motor Vehicle Sales MoM/YoY Aug
- JN Bank of Japan Policy Statement
- US Retail Sales Advance Aug
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