The AUD
The Aussie dollar more than held its ground during the US fiscal impasse and it has strengthened even further since the deal was done. A later start to Fed tapering now looks likely, and subsequently the USD has been hit hard.
The AUD/USD has started the week around 0.9670 USD, its highest level since early June. While US news has been the main driver, commodity prices are also providing support. Iron ore prices out of China have remained resilient despite the ramp up in output from Australia, pointing to signs of robust Chinese steel industry activity. For the early part of this week, with AUD volatility low, the risk is the AUD pushes to fresh highs, especially if Tuesday’s release of US Non farm Payrolls disappoints, leading to further USD weakness.
Read the full report: Market Research
NAB