The Australian dollar is holding steady today awaiting a speech later in the afternoon by US Fed president Janet Yellen while also being bolstered by a round of strong local data.
At 3.18pm (AEDT) the Aussie dollar was trading at US70.55c after hitting a low of US69.73c in yesterday’s trade.
Data out of Australia yesterday showed New home sales grew by 6 percent, well up on the previous figure of -2.7 percent which is good for the economy but a problem for the RBA who would like to leave a rate cut on the table if needed this year.
A rate reduction at this stage would on further inflame an already overheated housing market so bets on a move from the central bank were greatly reduced after the news.
In a real boost for the local economy, the latest Westpac consumer confidence survey also came in well above expectations last month jumping by nearly 5 percent to 101.3 and breaking the psychological barrier of 100, which separates the optimists from the pessimists.
The news may help boost the inflation figure, which currently sits at the bottom end of the RBA’s target range of between 2 and 3 percent.
All eyes will now be on the US later today as Fed president Yellen gives her economic testimony to US congress with some predicting she may take a cautious tone in light of the global turmoil surrounding financial markets.
This may be enough to lend some support to the Aussie dollar as we head into Thursdays speech by governor RBA governor Glen Stevens that is also expected to create some volatility in the local currency.
Activity of FIBO Group, Ltd. Company is regulated by the Financial Services Commission (FSC), registration number of the licence: SIBA/L/14/1063.
Trading on Forex market implies serious risk including the risk of loss of all the funds invested. Please, take into account that trading on the forex market isn’t suitable for all investors and traders.
Unfortunately the services of the company aren’t provided to residents of Austria, Great Britain, Iraq, North Korea and the USA.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.