There were no data releases from Australia yesterday. The RBA has stayed neutral on recent Aussie dollar strength, though assistant governor Guy Debelle said last week: "Most central banks want lower currencies, to push up inflation or create a bit more activity. I don't think we're any different from that. But obviously everyone can't have a depreciating currency." Justin Fabo, senior economist at ANZ expects the US dollar to strengthen over the medium term and provide some relief for the Aussie, however until then the local currency will remain a frustration for the RBA.
OANDA Australia senior trader Stephen Innes said the Australian dollar was down, but likely to take off again before the end of the week. He said it would be supported by stronger commodity prices, ongoing US dollar weakness and increased risk appetite.
“The Aussie could be a fueled missile just waiting to take off,” Mr Innes said. “I suspect there will be a rush to get topside exposure established on the next Aussie run to the US77 cents handle.”
In the US session Existing Home Sales figures were published. Total existing-home sales dropped 7.1 percent to a seasonally adjusted annual rate of 5.08 million in February from 5.47 million in January, thus missing forecasts on decline to 5.34 million. Despite last month's large decline, sales are still 2.2 percent higher than a year ago. Lawrence Yun, NAR chief economist, says existing sales disappointed in February and failed to keep pace with what had been a strong start to the year.
From Australia, tomorrow, HPI data will be published. Increase by 0.1% was anticipated. There will be no data releases in the US session.
Figures to watch:
HPI (Tuesday 2:30)