The Australian (AUD) and New Zealand (NZD) are set to fall as policy makers talk interest rate cuts to try to spark growth, this along with Oil has hit another blow down 3% to $35.98 its lowest since 2004. Jim Ritterbusch at Chicago-based oil market consultancy Ritterbusch & Associates said “A bearish stance still appears warranted and we continue to view a decline to the $32.50 area”. Crude prices have dived since 2014 they are 70 percent down from highs above $100 a barrel.
The weakening AUD is good news for Australians living abroad giving them an opportunity to invest in property cheaper. The Australian dollar fell to six year lows in September, although it has recovered since then and has been hovering around 0.7100 against the US dollar (USD) by late December.
High tier data releases this week are due out tomorrow morning at 1am from the US has Consumer Confidence figures out forecasted an increase from 90.4 to 93.9. New Year’s eve sees further data out of the US with Unemployment claims which has been forecasted for an increase from 267k to 274k and on Friday Manufacturing PMI data released out of China.
With little news this week all eyes will be on the start of the year next week with Analysts saying the AUD is set to sit in the 0.60’s for much of 2016.
Things to keep an eye on in 2016 Oil, Iron ore, Dairy Prices from New Zealand and definitely any moves from China.
The AUD/USD is currently trading at 0.7251 9am AEST
The AUD/NZD is currently trading at 1.0583 9am AEST