June 20, 2011
Saved by risk appetite! While Australia was chillin’ like a villain with no economic reports released last Friday, a wave of risk appetite in markets cheered the Aussie into driving AUD/USD 77 pips higher than its open price at 1.0618.
One of the main reasons why high-yielding investors came out of their siestas is the easing of Greece’s debt problems. Last Friday German Chancellor Angela Merkel gave an inch against the ECB and agreed for Germany to let up its calls for participation of international banks. Hey, at least they’re getting somewhere!
Another booster for the Aussie last Friday was the rise in gold prices. Gold firmed above the psychological $1,500 per oz. mark, which turned positive for the gold-related Aussie.
Will the Aussie bulls keep their momentum this week? Though no economic reports are scheduled today, Australia will be releasing its MI leading index report tomorrow at 12:30 am GMT, with the RBA’s monetary policy meeting minutes following suit at 1:30 am GMT. Since the RBA was surprisingly dovish on its last interest rate statement, we expect the RBA minutes to be dovish as well.
The CB leading index report on Thursday at 12:30 am GMT is the last report scheduled for this week, so make sure you keep close tabs on risk sentiment! The European officials had a pretty long tea party last weekend, so all eyes will be on whether or not they’ve reached a concrete bailout plan for Greece.
If whatever they decide satisfies both the credit ratings agencies and the market junkies, then we just might see more comdoll bulls come the Aussie’s way. Watch out for that!
"The only cable I watch is the pound baby."