Currency Update: The Australian Dollar traded in a narrow range on Friday night after the volatile moves of the past week as markets look forward this week to clues on the stimulus programs of both the US Federal Reserve and RBA. This morning the AUD has opened in the mid 0.9500’s after some fairly wild movements last week. With speculation mounting on the likely nature of future quantitative measures by the US Federal Reserve and the release of the RBA minutes from this month’s meeting to occur tomorrow, we expect the recent volatility in the FX markets to subside over the next couple of days. This could change when tomorrow morning at 11:30 am AEST we see the minutes of the RBA meeting from earlier this month. This month’s statement was very brief and the market will be looking for further clues about the intention of the RBA to further lowering the overnight cash rate to stimulate our local economy. Locally today we will see new vehicle sales for May. Along with the RBA minutes tomorrow we will see the NSW state budget. Later in the week the flash HSBC manufacturing PMI data from China could spark some volatility in the AUD on Thursday. The RBA Bulletin will also be released that day. Today’s Forecast Range: USD 0.9535 - 0.9625.
Posted on: Sun, 16 Jun 2013 23:23:26 +0000