Author: Dennis Li
An improved risk appetite post the Thanksgiving weekend has helped offshore equities with the Dow up almost 1.50% on good volumes. Somewhat of a concern for the AUD is the fact that the increased appetite for risk has not been reflected in the AUD’s value. It has lost approx. 30 points from yesterday’s close due to a sharp rebound in the USD. A rally in the Crude oil price still couldn’t help the AUD and as we approach the December/ January period which is, apart from the odd exception, a strong period for the Aussie dollar, the markets will be looking for a good reason to take the AUD higher. The catalyst may be the G20 summit where all eyes will be on China and the US and any trade associated comments.
Prior to that, with another quiet week of market-moving economic data ahead, RBA Governor Philip Lowe’s speech this morning and that from Fed’s Powell on both Thursday and Friday before the G20 summit will capture all of the market’s attentions.
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