The AUDUSD opens higher at 0.9395 this morning. The USD weakened as US Treasury yields dropped for the second straight day. Safe haven buying of long-dated US Treasuries is seen as limited USD strength, at least for the time being, with some investors apprehensive that US equity markets are at record levels. The AUDUSD managed to rally a touch above 0.9400 overnight, and we sit just below that level now. Yesterdays marginally better than expected NAB Business Confidence also added to the positive AUD tone. The Feds Kocherlakota said that they should not raise interest rates until 1-2year outlook for inflation is 2%. He also mentioned the Fed is not too concerned about the low level of Q1 growth which was seen as negatively weather-impacted. The GBP dipped after an unexpected fall in British factory and industrial output. Half-time in the World Cup semi-final - Germany thrashing Brazil 5-nil! Global equity markets were lower on the day - Dow -0.7%, Nikkei -0.4%, Shanghai +0.2%, FTSE -1.3%, DAX -1.4% Gold prices ended the day flat at USD$1319. Oil prices fell 1.1%. The current indicative mid-rates are: AUDUSD 0.9395 AUDEUR 0.6905 AUDGBP 0.5485 AUDJPY 95.45 AUDNZD 1.0695 Westpac Consumer Sentiment will be released at 10:30am AEST. Chinese inflation & producer price figures hits the tapes at 11:30am AEST.
Posted on: Tue, 08 Jul 2014 21:18:30 +0000
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