The Confidence in the Australian Dollar against the US Dollar continued yesterday into last night, with it reaching 0.9413 and positive data out of China giving the “Aussie” another well-needed boost
Chinese Industrial Profits were released with a positive result of 11.4% compared to the previous result of 9.8%. This strong industrial data out of China is a positive signal for Australia as trading and the Australian Dollar saw immediate improvement off the back of this.
This week is extremely quiet for economic data in Australia and most movement’s will likely be off the back of data derived from the US.
Mixed low level US data over night didn’t provide any substantial movements for the US Dollar. We had US Services PMI data out with no change to the previous period at 61.0 and USD Pending Home Sales improve at -4.5%. However, the monthly figure saw a decline on the previous month at -1.1% compared to 6.0% for the previous month.
Wednesday will see more significant data out of the US, with Employment Change, Gross domestic Product and personal Consumption.
Thursday provides us with the Federal Open Market committee Rate decision; any decision release and supplementary statements will always have significant influence over the exchange rate of a currency. The wording of the statement released is often more significant than the overall rate change and this week is likely to be no different. The forecast is for no change to the current cash rate at 0.25%. Any comments about a potential rise in the Cash Rate is likely to cause significant fluctuations to the currency.