Daily Economic Commentary: Australia

The Aussie continued to slide down a steep, slippery slope yesterday as another economic report piled up to support a weak domestic economy. AUD/USD ended up closing 33 pips under its open price after reaching an intraday low at 1.0273.

Australia’s weak employment prospects certainly didn’t help the Aussie. Though an additional 10,400 workers found jobs in January instead of the expected 5,800 uptick, the steadiness in the 5.4% unemployment rate hinted that a lot more workers are leaving the work force by not looking for jobs at all. Uh-oh.

The RBA’s quarterly interest rate statement is the only report scheduled for today, so the Aussie might not get any more action for the rest of the day unless we see any major reports in the next trading sessions.

Good luck trading today, fellas!

After getting wiped out on Thursday, the Australian dollar got back on its feet last Friday as AUD/USD cruised back above the 1.0300 area. Was this the start of a rebound or merely a retracement?

The Australian dollar got a bit of a boost from stronger than expected Chinese trade balance released last Friday as the actual figure showed a 29.2 billion USD surplus, higher than the estimated 24.3 billion USD reading. Although the January figure was still much lower than December’s 31.6 billion USD surplus, components of the report revealed that the dip was mostly a result of a jump in imports. As one of China’s biggest trade partners, Australia stands to benefit if Chinese imports keep growing at this strong pace.

Weaker than expected Chinese CPI kept the Aussie’s gains in check though as the figure came in at only 2.0% for January instead of the projected 2.1% reading. This was also considerably lower than the 2.5% increase in price levels posted for December.

There are no reports due from the Land Down Under for the first couple of days of the week. Australia will print its Westpac consumer sentiment figure on Wednesday and traders could be pricing in a decline in confidence, judging from the recent jobs release. No other reports are due from Australia for the rest of the week so let’s see if AUD/USD will resume its downtrend later on!

The AUD/USD has gotten off to a weak start yesterday as it dipped below the 1.0300 level. It’s not trading at 1.0268, a good 50 pips lower from its opening price on Monday. With the pair making a “lower low,” it appears that it’s going to head lower! What’s happening with AUD/USD?

The pair dipped due to the bearish outlook of the Reserve Bank of Australia (RBA) on the economy. Apparently, the central bank downgraded its GDP and inflation forecasts. In addition, the Australian home loans disappointed and dropped to its lowest level since 2010.

Earlier today, AUD/USD got a little bit of reprieve. The NAB Business Confidence survey was reported to have improved to 3 from the previous month’s reading of 2 (revised down from 3).

No tier 1 data scheduled to be published today but we’ll see the Westpac Consumer Sentiment survey tonight at 11:30 pm GMT. Last month, the survey showed that financial confidence improved by 0.6%. Let’s see if it’s going to improve again this month.

Surf’s up, mates! AUD/USD caught a 100-pip wave yesterday as the pair cruised from a low of 1.0225 to the 1.0320 area during the New York session. Is this the start of an Aussie rally or is it just a retracement?

Even though there were no economic releases from Australia, the Aussie was able to bag some gains during yesterday’s trading as the G7 statement managed to ease some currency war concerns. There are no reports due from the Land Down Under today, which means that AUD/USD and AUD/JPY could be strongly affected by economic releases from the U.S. and Japan.

Don’t forget that the U.S. is set to release its retail sales report today while Japan is going to print its Q4 2012 GDP reading much later on. There might be some choppy waters ahead so good luck trading!

The Aussie was one of the few currencies that was able to bag a decent amount of pips against the Greenback yesterday. Thanks to a surge in consumer confidence, AUD/USD traded 41 pips higher and finished at 1.0343.

The strong reading from the Westpac Consumer Sentiment index pretty much set the tone for Aussie trading as it revealed a big jump in confidence from 0.6% to 7.7%, its highest in 26 months. Apparently, our bros in the Land Down Under are feeling much more optimistic about the economy and their finances, which suggests that the RBA’s previous rate cuts are finally working their magic.

Today, we only have MI inflation expectations data on tap, but it doesn’t seem to have the same impact as yesterday’s consumer sentiment index. According to the January report, consumers expect the prices of goods and services to increase by 2.2% over the next 12 months, which is notably higher than the 2.0% that was expected last month. But it seems like our homies ain’t paying much attention to this report, because the Aussie hasn’t moved much yet!

Thanks to a positive inflation report, the Aussie was able to sneak in some pips on the Greenback. AUD/USD ticked 11 pips higher after hitting an intraday high of 1.0362.

Only the inflation expectations report was released from the Land Down Under yesterday, but I guess it was enough to spur on the Aussie bulls. Consumers expect prices to rise by 2.2%, a bit faster than the 2.0% figure that we saw last month.

Unfortunately, some market players still believe that the RBA is set on cutting its rates early this year. This is probably why the Aussie didn’t get much support yesterday.

Today no data is scheduled from Australia, so watch your newswires closely for any news on the big G20 meeting in Moscow. If the countries’ leaders say anything significant about currency manipulation or a currency war, then we might see volatility in the high-yielding currencies like the comdolls.

Score one for the bears! AUD/USD took a sharp tumble to end the week as the pair finished 59 pips lower at 1.0292. What the heck happened?

Without any economic reports to prop the Australian currency up, the Aussie was left at the mercy of market sentiment. Unfortunately, street prices of bling-bling (a.k.a. gold) took a spill last Friday, which contributed to Aussie weakness.

So far, this week hasn’t brought much good news for Australia. We just got word that New Motor Vehicle Sales were down 2.4% last month, following the 2.7% surge in December. While this report didn’t contribute to further Aussie bearishness, it also doesn’t help restore demand for the comdoll.

Hopefully tomorrow, the Aussie will find something to fuel its recovery in the RBA monetary policy meeting minutes. Tune in at 12:30 am GMT on Tuesday to get the low down on the central bank’s latest meeting.

With no major waves hitting the market, pip surfing on AUD/USD yesterday was a major buzzkill. The pair remained flat and stayed within range, eventually closing at its daily open price at 1.0296. Will we see more of the same today?

Earlier this morning, the minutes of the latest RBA meeting were released. There were no big surprises, with the big topics being discussed being the state of the economy and how the level of inflation does leave some space for an additional rate cut. With nothing new said, the Aussie has bumped up slightly, but not back up to recent highs.

Nothing due for the rest of the day, so let’s see if the bulls can sustain this momentum during the latter trading sessions.

Surf’s up, mate! The Australian dollar caught a fresh wave of rallies during yesterday’s trading as AUD/USD cruised up to the 1.0360 area. Does this signal a start of a new uptrend?

Minutes of the latest RBA monetary policy meeting revealed that policymakers are confident that the central bank’s current easing efforts are doing the trick. According to some officials, the RBA’s low interest rates are starting to take effect and spur stronger economic growth. However, the central bank still lowered its growth and inflation forecasts as they believe that several economic challenges still remain.

There are no major reports due from the Land Down Under today as AUD/USD could be more sensitive to U.S. data due today, which is the FOMC meeting minutes. Better keep an eye out for what the Fed has to say because upbeat remarks about the U.S. economy could force the Aussie to return some of its recent gains.

Talk about a wipeout! Just when we all thought the Aussie was on its way up to the charts, the demand for the dollar surged! AUD/USD finished the day lower at 1.0256 after opening at 1.0354.

As I’ve said in my USD commentary, the FOMC meeting minutes revealed that the Fed is actually thinking about ending QE sooner than expected. Poor Aussie! Without any market-moving report from Australia, it just fell victim to market sentiment.

Our forex calendar still doesn’t have anything from the Land Down Under today so we might see market sentiment continue to dictate the comdoll’s fate on the charts. Be sure you gauge the market’s mood if you plan on trading the currency, ayt? peace!

Boring! Without any market-moving report from the U.S. and Australia, price action on AUD/USD in yesterday’s trading was nothing short of being a snoozer. The pair just consolidated around the 1.0250 minor psychological handle before finishing the day with a 12-pip loss at 1.0234.

But don’t fret! Earlier, during the Tokyo session, RBA Governor Glenn Stevens gave a speech that inspired an upward rally on the Aussie. According to the RBA head honcho, the series of rate cuts made by the central bank in the past few months seem to be enough and it might be a good idea to wait and let the easing measures sink in to the economy.

This consequently fueled speculations that the RBA could sit on the sidelines in the coming months, convincing traders to pare some of their rate cut bets.

Will his speech be enough to boost the Aussie in today’s trading? Err, I’m not really sure. To be safe, just be sure to wait for candlestick confirmation to affirm whatever your bias is. Good luck!

Aussie bulls were in total control of AUD/USD from the minute the markets opened! With much help from RBA Governor Glenn Stevens, they took the pair from an opening price of 1.0234 straight up to 1.0321.

Stevens set the tone for Aussie trading early in the day with his unexpectedly upbeat remarks about the economy. Not only did the central bank top dog avoid talking about the need for a rate cut in his semi-annual testimony, but he also said that the RBA wants to give its previous rate cuts more time to do their magic. Now keep in mind, traders had been pricing in a rate cut from the RBA as soon as next month, so y’all can bet that more than a few traders were caught off guard by Stevens’ words.

This week, it looks like the markets may have more time to chew on Stevens’ announcement since Australia doesn’t have any major events on tap. For now, y’all are better off checking out what the U.S. has in store for you, if you plan on trading news events with AUD/USD. Good luck and happy trading, fellas!

The lack of economic reports from Australia made the Aussie vulnerable to market sentiment. Unfortunately for the comdoll, it was hit by a double whammy of bad news. AUD/USD finished the day with a 29-pip loss at 1.0283.

First, there was China’s HSBC manufacturing PMI report for February which printed lower than the 52.2 forecast at 50.4. Remember that China is Australia’s largest trading partner and so, the disappointing figure was also bad news to the Australian economy.

There was also talk about Berlusconi going back to Italy’s political scene which caused a wave of risk aversion. Consequently, traders fled from the Aussie as well as from the other higher-yielding currencies.

No reports are due from the Land Down Under today. I bet events for the Aussie’s counterparts will continue to move the comdoll in today’s trading. Be on your toes for updates from Italy as well as Fed Chairman Ben Bernanke’s speech!

For the second consecutive day, AUD/USD suffered the wrath of the bears. The pair performed poorly as it fell to 1.0234 from its opening price at 1.0284. AUD/USD mainly struggled as political uncertainty in Italy persisted.

As you all probably know by now, the Italian parliamentary elections over the weekend was unable to produce a clear winner. The prospect of prolonged political uncertainty in Italy is taking a toll on broad market risk sentiment, which means we could see AUD/USD continue to fall.

Earlier today, the Aussie was treated to more disappointing news. The quarterly report on construction work done missed expectations and declined 0.1%. The forecast was for it to rise 1.5%.

No red flags on the forex calendar. The next important report, the quarterly Private Capital Expenditure, won’t come out until 12:30 am GMT tomorrow. It’s anticipated to show a 1.1% increase after the previous month’s 2.8% rise. Let’s see if the positive forecast will get traders to price in the Aussie event today.

After a rough start in the morning, the Aussie came roaring back late, eventually posting a net gain for the day. AUD/USD hit an intraday low at 1.0183 but eventually finished at 1.0245, up 12 pips from its opening price. The question is, can the Aussie repeat its escape act?

The Aussie has been under pressure lately thanks to poor data, the prospect of a rate cut, and comments from S&P, who said that a credit downgrade could be in the cards should demand from China slow down. In fact, it’s strange that the Aussie remains afloat as I write this, as recently released private capex figures showed a surprise 1.2% decline in spending, after it was expected to grow by 1.1%.

I suppose everyone is still hungover from the nice risk rally we saw during the New York session. If risk appetite is indeed on the way up, it could give the Aussie a boost over the remainder of the week.

Looks like risk sentiment isn’t on the Aussie’s side! After it looked like the pair might continue its good fortune from Wednesday, AUD/USD came crashing down during the latter sessions, as it fell all the way down to 1.0221, marking a 23-pip loss for the day.

With risk aversion playing a crucial role in yesterday’s trading flows, higher yielding currencies like the Australian dollar were softer across the board. With no data on table for today, we may see risk sentiment continue to dominate the markets. Good luck trading today, mates!

Like other major pairs, a major support level on AUD/USD was threatened last Friday as risk aversion kicked in the markets. The pair ended the day at 1.0193, a few pips from the big 1.0200 handle.

Of course, it didn’t help the comdoll bulls that the Chinese government’s manufacturing PMI numbers echoed the HSBC’s figures release a few days earlier. The data came in at 50.1 in February, a hair’s breadth away from the 50.0 mark and lower the expected 50.5 reading. This is particularly bearish for the Aussie as China is Australia’s largest trading partner.

Maybe the Aussie could get some support this week when a couple of major reports are released. It started off on the wrong foot though, when the building approvals data printed a few hours ago showed a 2.4% drop in January. This followed a weak MI inflation gauge reading but preceded a relatively strong ANZ job ads report (3.0% in February vs. 0.6% in January).

No other reports are scheduled for release today, but tomorrow at 1:30 am GMT we’ll see Australia’s retail sales numbers, followed by the big RBA rate decision at 4:30 am GMT. Both reports usually have a huge impact on Aussie pairs, so make sure you keep your eyes peeled for those!

Man, you gotta give Aussie bulls an “A” for effort. AUD/USD got sold off early on in yesterday’s trading, tapping an intraday low of 1.0115. However, just when it seemed that all hope was lost, the pair rallied to close the day just 10 pips below its opening price at 1.0193.

Will the Aussie be able to extend its gains? That probably depends on how the RBA sounds in its rate statement which is due a few minutes from now. No one really expects a rate cut. However, everyone is curious to hear what RBA Governor Glenn Stevens has to say. He sounded not-so-dovish in his last speech, hinting that no further easing is on the horizon.

If he sticks to his stance, we could see the Aussie today could prove to be a really good day for the Aussie especially since the retail sales report for January came in more than twice as expected at 0.9% versus the 0.4% forecast. On top of that, the current account printed at -14.7 billion AUD, narrower than the estimated 15.4 billion AUD deficit for Q4 2012.

Who surfed up the charts yesterday? The Aussie did! AUD/USD jumped from an intraday low of 1.0185 to finish the day 51 pips higher than its open price. Booyah!

The Aussie started the day on the right side of the charts when Australia’s retail sales showed a 0.9% growth instead of the 0.4% uptick that many had expected. Then, later in the day the RBA surprised the markets when it held off its interest rate cuts for another month and kept its rates at 3.00%.

As it turned out, the RBA honchos are still satisfied with the impact of their previous interest rates. They’re also a bit more optimistic on the global economy, saying that the downside risks are somewhat diminishing. Will the good times last for the comdoll? Judging by the positive GDP report printed a few hours ago, I’m giving the Aussie bulls a couple more hours to party! The data showed a 0.6% growth for Q4 2012, which is only a tad bit lower than the upwardly revised (from 0.5% to 0.7%) figure for Q3 2012.

Australia won’t release another report until tomorrow, so pay attention to major events from the other economies that might influence the Aussie’s price action. I hear that Mark Carney from the BOC will be on stage at 4:00 pm GMT for their interest rate decision! Don’t miss it, aight?

The Australian dollar got wiped out during yesterday’s trading after AUD/USD failed to break past the 1.0300 major psychological resistance. The pair tumbled all the way back down to the 1.0200 area for another test of the support level. Will it still hold this time?

Australia’s Q4 2012 GDP came in line with consensus at 0.6% while the previous quarter’s figure was revised up from 0.5% to 0.7%. However, the Aussie was unable to sustain its rally as risk aversion gripped the markets during the start of the London session. It didn’t help that U.S. data, namely the ADP non-farm employment change and factory orders, beat expectations and boosted the Greenback.

Australia just released a weaker than expected trade balance for January as the deficit widened to 1.06 billion AUD, nearly twice as large as the estimated 0.51 billion AUD shortfall. In addition, the previous month’s figure was revised down from a deficit of 0.47 billion AUD to 0.69 billion AUD. This goes to show that Australia’s exports have been lagging in the past few months, which doesn’t bode well for the commodity-dependent nation.

No other reports are due from Australia today as the downbeat trade report could keep weighing on AUD/USD. Unless risk appetite rebounds within the day, AUD/USD might be on its way to break below the 1.0200 mark. Watch out for that!