Daily Economic Commentary: Australia

High five, Aussie bulls! The Aussie was one of the strongest (if not THE strongest) performing currencies last Friday as data from China inspired optimism for the comdolls. AUD/USD locked in its 8[SUP]th[/SUP] consecutive positive day and ended the day 44 pips higher than its open price. Up top, mates!

As I mentioned in my other pieces, there really wasn’t any market-moving report due from the major economies last Friday. It was only China and its better-than-expected GDP, fixed asset investment, and industrial production that provided any volatility in the Asian session. High-yielding currencies initially sold off at the thought that it’s government effort that’s propping up economic growth, but fears soon eased as traders reacted to the overall positive vibe of the Chinese reports.

We won’t be seeing any major news from the Land Down Under today, so the Aussie will most likely trade on risk and comdoll sentiment. That means you gotta pay attention to the dollar and the other major economies!

Well you can’t win 'em all, can you? The Australian dollar raked in some gains against the Japanese yen but was unable to make headway against the U.S. dollar in yesterday’s trading. AUD/USD held steady around the .9650 area while AUD/JPY climbed towards the 95.00 handle. Is the Aussie ready for more gains?

There were no reports released from the Land Down Under yesterday, as the Aussie was kept afloat by risk sentiment. For today, Australia’s economic schedule is still empty, which means that Aussie pairs could be very sensitive to sentiment once more.

If you’re trading AUD/USD, do watch out for the release of the U.S. non-farm payrolls at 1:30 pm GMT as this could spark huge waves among dollar pairs. A slightly stronger increase in hiring is projected but a disappointing report might be enough to trigger more losses for the dollar. Be careful out there!

Aaaand we’re back to regular programming! AUD/USD resumed its uptrend yesterday after a weak NFP report boosted higher-yielding currencies like the comdolls.

Australia didn’t release any economic report yesterday, so AUD/USD and AUD/JPY’s moves could be attributed to the burst in risk appetite seen after the release of a weak NFP report.

Let’s see if today’s reports from Australia could entice the bulls to keep their momentum. A few hours ago we saw the Land Down Under’s quarterly inflation numbers, which clocked in a 1.2% growth when analysts had only been watching for a 0.8% uptick. The rise in consumer prices decreases incentive for the RBA to cut rates, so the Aussie (so far) is reacting positively.

No other news data is scheduled for release today, so you might want to pay attention to other major economies for potential market-moving reports!

Wipeout! The Australian dollar gave up a lot of ground in yesterday’s trading, as AUD/USD retreated upon reaching the .9750 level and tumbled to a low of .9608. AUD/JPY also had its share of losses, as it slipped below the 94.00 handle.

Australia’s inflation figures actually beat expectations, as the quarterly CPI printed a 1.2% increase in price levels, but this wasn’t enough to keep the Aussie afloat in yesterday’s Asian session. Around that time, news of China’s high money market rates rattled traders and sparked concerns about lower liquidity and potentially weaker growth.

Fortunately for the Aussie, it was able to bounce back when China reported a stronger than expected increase in its HSBC flash manufacturing PMI. The reading for October rose from 50.2 to 50.9, outpacing the forecast at 50.5 and reflecting a stronger expansion in the manufacturing sector. There are no other reports lined up from Australia or China for the rest of the day so y’all better keep tabs on risk sentiment if you’re trading the Aussie.

Hang in there, mates! The Aussie received support in the early trading sessions but struggled to gain momentum in the later trading hours. Heck, AUD/USD and AUD/JPY even closed lower than their open prices!

The Aussie started the day strong as China’s HSBC manufacturing PMI printed a better-than-expected reading. Unfortunately, not-so-stellar performances of the Asian markets as well as risk aversion caught up to the comdolls and weighed on the Aussie in the later trading sessions.

Australia isn’t scheduled to release any reports today so the Aussie will most likely trade on risk sentiment once again. You know what to watch out for!

The Aussie sure knows a thing or two about going down under! AUD/USD slipped below the .9600 major psychological handle on Friday while AUD/JPY dipped to a low of 93.17. Will the Australian dollar keep getting wiped out today or can it catch a good wave?

There were no reports released from Australia last Friday, leaving the Aussie sensitive to market sentiment. Unfortunately for the higher-yielding commodity currency, risk-taking was off during the Asian session as traders continued to bite their nails when thinking about the potential impact of the rising Chinese money market rates on the global economy.

There are no reports due from Australia today, which means that AUD/USD and AUD/JPY could react to sentiment once again. With that, better keep tabs on how Asian markets are faring and if there are more reasons to keep risk appetite down.

When the high-yielding bulls are away, the Aussie bears will definitely play! Despite the lack of reports from the Land Down Under, AUD/USD and AUD/JPY still ended the day in the red. Does this have something to do with the overall risk aversion in the markets?

You bet your pips it does! As I mentioned in my other updates, the lack of reports and a few disappointing ones from the major currencies inspired weaknesses from the high-yielding currencies.

Australia won’t be releasing any economic data again today, so y’all better keep close tabs on any news event that might affect comdoll or risk appetite! For example, the tier 1 reports due from the U.S. today could rock the major dollar pairs!

The Aussie just can’t catch a good wave, can it? AUD/USD kept getting wiped out yesterday, as it crashed below the .9500 major psychological support. AUD/JPY was also having a terrible day when it chalked up roughly 100 pips in losses.

There were no reports released from the Land Down Under yesterday, which means that the Aussie’s decline was mostly a result of the risk-off market environment. Earlier today, Australia printed a 6.4% increase in HIA new home sales, stronger than the previous month’s 3.4% rise.

There are no other reports due from Australia for the rest of the day so AUD/USD might simply react to U.S. events, which are the release of the ADP jobs figures and the FOMC’s monetary policy statement. Watch out for a potential midweek reversal if market sentiment shifts though!

Saved by a bit of optimism! Unlike most of the major currencies, AUD/USD didn’t end the day in the red. Not only that, but AUD/JPY also posted significant gains!

Australia’s better-than-expected building approvals and import prices reports did a lot to support the comdoll, so it wasn’t easy for the bulls to attack when the dollar bulls pulled off a coup against the other major currencies.

Australia’s strong new home sales report could help the Aussie post more gains today. The report showed a 6.4% gain for the month of September, which is a lot more than 3.4% increase that we saw for the month of August. No more news from Australia today, so y’all better look at other news that might affect the comdolls’ price action!

Thursday was not a good day to be an Aussie bull, as the commodity currency was unable to advance against the U.S. dollar and the Japanese yen. AUD/USD slipped lower to the .9450 level while AUD/JPY crashed back to 93.00. Will Aussie pairs have a chance to bounce back?

Data from the Land Down Under was actually stronger than expected, with the building approvals report printing a jaw-dropping 14.4% jump and quarterly import prices showing an impressive 6.1% increase. However, these didn’t seem to be enough to keep the Australian dollar supported throughout the day, as risk appetite remained weak.

Earlier today, Australia reported a stronger than expected PPI figure of 1.3% versus the consensus of a mere 0.4% uptick. This rise in producer price inflation might be enough to convince RBA policymakers to keep monetary policy unchanged in the meantime.

China’s official manufacturing PMI figure came in a bit stronger than expected at 51.4, a couple of notches higher than the 51.2 estimate and a few points up from the previous 51.1 reading. This could provide support for the Aussie for the rest of the day, unless risk sentiment takes a turn for the worse. Be careful out there!