Aussie dollar falls towards 0.6000
 |
Dow Jones falls 444.99 points |
| |
Crude Oil falls to US $48.70 a barrel |
| |
UK Retail Sales m/m -0.1% Vs a -0.9% forecast |
Market Update
The Aussie dollar lost close to 4 cents last night after the prospect of more aggressive AU interest rate cuts and new economic reports pointed towards an even deeper global recession than first expected. The Dow Jones fell 444.99 as lawmakers postponed voting on a plan to rescue the auto industry. Crude oil tumbled below $50 a barrel to its lowest levels since May 2005 as global recession fears are poised to cut the global energy demand. The AUD opened below 0.6100 against the greenback and the Aussie also took a pounding against the Euro opening under 0.4900 retreating from the 0.5100 levels we saw yesterday.
Domestic traders are now factoring at least a 75 basis point cut by the RBA next meeting on Dec 2 and a 95% chance of a 100 base point cut.
Yesterday in the RBA monthly bulletin they announced that the RBA purchased A$3.15B of its own currency last month, the biggest net purchase on record as the local dollar posted a record monthly decline.
Overnight UK Retail sales were released showing a -0.1% Vs a -0.9% expectation and US unemployment claims came out with a slightly worse 542K Vs a 508K forecast.
Today no major domestic announcements are expected and tonight CAD Core CPI m/m figures will be released with a 0.0 expectation and a JPY Monetary Policy Statement will also be realised.
Trading Range
0.6000 - 0.6200
Current Weeks Releases
| Local Data |
Due |
Exp |
Prev |
|
AU Real Retail Sales (Q3)
|
Mon |
0.4% |
-0.6% |
| AU RBA minutes released from Nov board meeting |
Tue |
- |
- |
| NZ PPI (Q3) |
Wed |
- |
5.6% |
| AU RBA Assistant Governor Edey speaks in Sydney |
Thur |
- |
- |
| AU RBA Governor Stevens speaks in Melbourne |
Thur |
- |
- |
| AU Treasurer Wayne Swan addresses the Australia-Israel Chamber of Commerce |
Fri |
- |
- |
| International Data |
Due |
Exp |
Prev |
| EU Trade Balance (Sep) |
Mon |
- |
-6.1B |
| US Empire State Manufacturing Index |
Mon |
-26 |
-24.6 |
| UK CPI (Nov) |
Tue |
0.1% |
0.5% |
| US PPI (Oct) |
Tue |
-1.8% |
-0.4% |
| ECB President Trichet speaks in London |
Tue |
- |
- |
| BoE releases minutes from Nov board meeting |
Wed |
- |
- |
| US CPI (Oct) |
Wed |
-0.8% |
-0.0% |
| Fed Governor Kohn speaks on sub prime crisis |
Wed |
- |
- |
| FOMC releases minutes from Oct meeting |
Wed |
- |
- |
| BoJ Interest rate announcement |
Fri |
0.3% |
0.3% |
|
