Daily Economic Commentary: Australia

[PipDiddy]

Make way for the king of the hill! The Aussie clobbered its major counterparts yesterday after Australia showed off its big muscles in its employment figures. AUDUSD soared to its .9238 closing price, while AUDJPY climbed by 48 pips to its closing price of 77.43.

Yesterday the employment figures revealed that 30,900 workers were added to Australia’s work force in August. This might be the reason why the unemployment exceeded the expectations and dropped to an 18-month low.

Hah! I guess there’s no stopping the mean employment machine! The stellar employment figures suggested that Australia’s economy can still be awesome even with the threats of high interest rates, cooling global demand, and a slowdown of growth in China, Australia’s biggest trading partner.

Australia will take a breather from releasing economic reports today, but watch out for any retracements in your charts! Those Aussie bears might sneak up on ya! Happy trading!

[PipDiddy]

The surf wasn’t the only thing that was up last Friday in Australia! The Aussie climbed once more against the Greenback, extending its wins to complete its trifecta. AUDUSD closed at .9318 after opening at .9297, while AUDJPY leapt from its opening price of 76.94 to close at 78.02.

The Aussie was back in the game after risk sentiment improved. Commodities markets gained, helping the Aussie and its comdoll brethren climb up the charts.

Earlier today, it picked up where it left off last Friday. There’s just no stopping the Aussie! After closing the weekend gaps it created, it resumed its northern course up the charts.

Let’s see if it has enough steam to continue its good run this week.

Tomorrow at 1:30 am GMT, the NAB business confidence report will be available. Any reading above 0 already indicates improving conditions, so expect investors to get even more bullish if August outperforms July by posting a reading higher than 2.

Then on Wednesday, Westpac publishes its consumer sentiment report. Will we see an improvement from August’s reading of 119.2? Find out at 12:30 am GMT!

Watch for the release of the MI inflation expectations figures on Thursday at 1:00 am GMT. July’s figures revealed that consumers were expecting prices to increase by 2.8%. If August posts higher results, the Aussie could be in for an extended bull run as inflation expectations have a tendency to turn into real inflation.

We end our week on Friday with a speech from RBA Assistant Governor Dr. Philip Lowe. See what he has to say at 3:34 am GMT because he might just hint at future monetary policy moves.

Good luck out there, folks! May the pips be with you!

[PipDiddy]

Oh Aussie, how traders love thee! Thanks to another the risk appetite pill, the Aussie was able to mark its fourth consecutive day of gains in yesterday’s trading session. After gapping up to kick off the week, AUDUSD continued to trek higher throughout the day to end the US trading session at its highest level since May at .9358.

In addition to risk appetite, the Aussie also found support from the optimistic NAB business confidence survey. It came out with a reading of 11 for the month of August, significantly higher from September’s 2.

No report coming out today from Australia, but do expect to see Westpac’s consumer confidence survey at 12:30 am GMT tomorrow. If the actual figure for September comes in above August’s reading of 119.2, the Aussie could stage another bull run!

[PipDiddy]

Make that five consecutive days of wins! Thanks to a broad-based dollar sell-off, AUDUSD was able to stage a stellar performance and post new year-to-date. The pair went as high as .9458 – its highest level since November 2009 – before giving up some of its gains.

There were a couple of reasons for AUDUSD’s super rally. First, rumor has it that the Fed will announce its second round of quantitative easing as early as November. Secondly, believe that China could allow the yuan to appreciate at a wider band against the dollar. And lastly, gold prices managed to rush to record highs.

No data coming out of Australia today, but just like yesterday, keep an open ear to news from other major economies! Pay particular attention to the release of the Empire State manufacturing index from the US, as better-than-expected figures could trigger risk appetite and push AUDUSD higher… again.

[PipDiddy]

It ends at five! The Aussie finally ran out of gas and posted a loss against its American counterpart. AUDUSD traded sideways for most of the day, hanging in the area of two-year highs. But buyers couldn’t keep it from slipping as the pair closed 34 pips lower for the day at .9384.

From the very beginning, the Aussie faced an uphill battle. The Westpac consumer confidence data released early in the day weighed it down as it dropped from a reading of 119.2 to 113.2 in September. As this report is a leading indicator of consumer spending, a decline in it can’t be good news for the economy.

This just in, folks! The August Melbourne Institute inflation expectations report that came out just minutes ago says that consumers believe prices of goods and services will increase by 3.1% over the next 12 months! This marks a 0.3% increase from the previous month. Perhaps this bit of positive data may give the Aussie more fuel to resume its uptrend, eh?

[PipDiddy]

The Aussie joined its comdoll homies in watching the dollar munch on their pips in yesterday’s trading. AUDUSD traded within a 64-pip range, closing 16 pips lower at 0.9368.

Apparently, the better-than-expected figures that we saw on Melbourne Institute’s inflation expectations report for August which came in at 3.1% and beat July’s 2.8% reading, wasn’t enough to get the Aussie rockin’ and rollin’ n the charts.

We don’t have anything on tap for the Aussie today. So, be sure to gauge the market’s risk sentiment when you make your trades, aight?

[PipDiddy]

“Let’s go Aussie, let’s go,” cheered the bulls as AUDUSD soared to a fresh two-year high at 0.9469 last Friday. Whoohoo! However, it seems like the Aussie didn’t get much lovin’ after the European session closed as AUDUSD went on a downtrend, ending the day with 5 pips lower at 0.9362. Tsk, tsk…

Without anything on tap for the Aussie, it was left vulnerable to the market’s sentiment. It was able to hustle early on Friday because a handful of traders we’re feeling giddy about the economic reports from Europe and US. But then the actual German PPI and University of Michigan Sentiment reports came in worse than expected and that spelled trouble for the high-yielding Aussie.

Today, RBA Governor Stevens is scheduled to talk in Shepparton at 3:30 am GMT. You may want to tune in to his speech because he may just give some hints on the bank’s future interest rate decisions. Oh, remember that the minutes of RBA’s most recent meeting is due tomorrow at 1:30 am GMT. If you keep an ear out for Stevens’ speech, you may be able to brace yourself better for tomorrow’s much anticipated report.

[PipDiddy]

Someone’s been pumping iron lately! The Aussie gave a powerful performance yesterday as it muscled its way against the Greenback. AUDUSD started the week off strongly, closing at .9467 and forging a new monthly high as it recorded a 104-pip gain for the day.

Yesterday’s headliner was RBA Governor Stevens’ big speech. In it, he said the RBA is considering another rate hike, maybe even before the year ends. No wonder traders were so eager to buy the Aussie! It looks like Australia’s recovery is well under way.

He gave bulls further cause for celebration when he said that the business sector is healthy, and that Australia is set to experience “the largest minerals and energy boom since the late 19th century.” Now, if that doesn’t get you all giddy, I don’t know what will!

Today, Australia will be publishing the latest MPC meeting minutes. Let’s see if the committee shares Governor Stevens’ hawkish sentiments at 1:30 am GMT!

[PipDiddy]

Whoa! Was there an earthquake yesterday? Or did the Aussie just rock my world after it hit a fresh two-year high against the dollar at 0.9565? Ha! Too bad the com-doll wasn’t able to hang on to its peak as it closed a tad bit lower at 0.9535. But that’s still a 69-pip win so, whoohoo!

Unlike the US Federal Reserve, traders found the RBA’s tone from its most recent meeting upbeat enough. Why? Well, let’s just say that the central bank is inclined to more rate hikes, thanks to the resource sector fueling Australia’s economic growth. Boo yeah!

There’s a good chance that the Aussie will continue its rock and roll up the charts given positive figure printed by the Melbourne Institute Leading Index, which came in at 0.4% in July and pared its 0.1% decline in June.

But wait! I read in Forex Gump’s blog yesterday that Portugal’s bond auction is scheduled today. Hmm, the outcome of the auction may cause a shift in the market’s risk sentiment, so I guess we better watch out for that.

[PipDiddy]

Somebody call the SWAT team because the Aussie’s the BOMB! Yesterday, AUDUSD posted hit a new two-year high at 0.9600 before ending the day at 0.9568. The comdoll bagged 32 pips from yesterday’s trading, stacking up its gains against the dollar this week to a total of 205 pips! Sha-bam!

The Melbourne Institute Leading Index for July which came in at 0.4% and erased its 0.1% decline in June, was definitely a good complement to the anti-dollar sentiment of the market.

Hmmm, I wonder if the stellar figure will be enough to keep traders head over heels for the Aussie given that we don’t have anything on tap for it for the rest of the week.

Yeah, you read that right. No economic reports from Australia left so be sure to gauge the market’s risk sentiment first before you make your Aussie trades, aight? Also take note that profit-taking may limit the Aussie’s rally up the charts.

Good luck and may the pips be with ya!