This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
The Aussie is trading at $0.9176, up 0.3% on the day but largely flat on the week as talk of a Chinese stimulus package and strong US jobs data pushed the currency pair around.
The Australian dollar dropped at the beginning of the week after some profit-taking from last week’s rally. Speculation of a Chinese stimulus package then boosted the aussie, as China is a large buyer of minerals from Australia.
Yesterday AUD/USD fell after the level of people claiming unemployment benefit in the US dropped to its lowest level since October 2007. The Federal Reserve have previously stated that it will trim its bond-buying scheme if the labour market improves, and so the announcement triggered aussie selling as tapering could begin as early as next month.
At 2.55pm (London time), the University of Michigan consumer confidence figures are revealed; economists are expecting a reading of 85.6 but if the report is stronger-than-expected we could see a drop off in AUD/USD.