Yesterday the Australian Dollar had a relatively quiet trading session during the Australian session, however, overnight the ‘Aussie’ saw significant gains against the Euro, Greenback and Pound Sterling.
Overnight the US economy reported on the percentage change of Durable Goods Orders for the month of July. The printed figures of 22.6% was much higher than the forecasted figure of 8.0% and the previous month’s 1.7% result. The second major release out of the States last night was concerned with Consumer Confidence for August. The consumer sentiment indicated that consumer confidence is on the rise. Despite these positive economic indicators, the US Dollar actually lost ground to the Australian Dollar.
Low-tier domestic data out of Australia in terms of the percentage change of Construction Work Done and Westpac Consumer Confidence will be released later today. Tomorrow’s New Home Sales result, and in particular, the percentage change to Private Capital Expenditure within Australia is likely to be more significant in terms of moving the value of the Australian Dollar.
There will be a lot of focus on the currency market tomorrow evening due to the high number of major global economic indicators. The strong-arm of the European economy, Germany, will commence proceedings when they announce their Unemployment Change and Unemployment Rate. A few hours after the market digests this announcement, the German Consumer Price Index will be released. This will indicate the current annualised inflation rate of both Germany and the accumulation of the European Nations. The forecasted figure is that the inflation rate will remain unchanged at 0.8%. The AUD is currently pushing towards a 2014 high against the Euro, so negatively perceived German data may push it over this mark.
Economists’ attention will turn from Germany to the States late tomorrow night when the all important Gross Domestic Product figure is printed. The annualised figure is currently sitting at a healthy 4.0% and the economic forecast is that it will reduce slightly to 3.9%. These major releases are sure to add volatility to the currency market tomorrow evening, especially in regards to the Euro and the US Dollar value.
Although it appears as though it will be a relatively stable day of trading again today, the currency market loves to surprise investors with it’s’ unpredictability. With the high degree of economic releases out tomorrow, any stability in the currency market is sure to be short-lived.