Aussie benefits from dollar pause

Volatility remains subdued during this quiet trading week and yesterday was an example of how disengaged investors are at this moment in time. Better than expected US GDP and Case-Shiller House Price data balanced out the bad consumer confidence and slightly worse numbers on Monday leading to a little profit taking in the dollar, but the wider picture in respect to interest rates and the next FOMC meeting remains unchanged. With US Thanksgiving tomorrow and the shortened trading week, already eyes are on next week’s nonfarm payroll figure although this now seems that it will be little more than a formality as the big dip in consumer confidence did little to move rate expectations. One of the main beneficiaries of the dollar’s inability to push higher is the Aussie where AUDUSD continues to push away from the 0.7000 level despite all that’s going against it in respect to lower commodity prices. This will be being closely watched by the RBA who would rather see the Aussie lower so next Tuesday’s RBA rate decision will be another important central bank meeting to watch in December.

From the US the weekly initial jobs numbers, a day earlier than normal, should be monitored, then the services and composite PMI at 14.45 GMT. Ahead of then UK markets will be keeping one eye on the Chancellor’s Autumn Statement which is unlikely to have too much impact on the markets although his plans for a government surplus by 2020 will have to change after all that’s happened recently with his tax credit proposals and the latest defence review.

Share: Analysis feed

FxPro UK Limited is authorised and regulated by the Financial Services Authority, registration number 509956. CFDs are leveraged products that incur a high level of risk and it is possible to lose all your capital invested. Please ensure that you understand the risks involved and seek independent advice if necessary.

Disclaimer: This material is considered a marketing communication and does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Past performance is not a guarantee of or prediction of future performance. FxPro does not take into account your personal investment objectives or financial situation. FxPro makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of FxPro, a third party or otherwise. This material has not been prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of FxPro. This communication must not be reproduced or further distributed without the prior permission of FxPro. Risk Warning: CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary. FxPro Financial Services Ltd is authorised and regulated by the CySEC (licence no. 078/07) and FxPro UK Limited is authorised and regulated by the Financial Services Authority, Number 509956.