Tropical Cyclone Christine will hit land tonight, with iron ore ports on Australia’s northwest coast shutting down over the weekend in anticipation. Hurricane Christine was upgraded to a Category 3 storm by the Australian Bureau of Meteorology.
The Aussie dollar has seen further pressure from anticipated weak Chinese data due tomorrow. Consensus expectations are for a decline in China’s purchasing managers’ index from 51.4 to 51.2.
The US dollar has seen a solid run of strength since the Federal Reserve announced that it would be scaling back its monthly asset purchases by USD10bn to USD75bn a month. The relative tightening comes amid an improvement in the US economic outlook.