A minority government may increase uncertainty and create some short-term volatility in the currency. |
Given the drop in gold prices and base metal prices I would see the upside to be quite limited for the Australian dollar today. |
Higher U.S. interest rates will continue to support the U.S. dollar in the near term. We're still looking for U.S. data to remain firm, which will help the dollar. |
Howard's comments have encouraged further selling in the Australian dollar. |
I think that tug of war will just keep it in a range. |
Rate rises may make their way back on the agenda. The Australian dollar should benefit. |
The chances of a rate hike will underpin the dollar. Even though the Fed is coming to the end of its rate cycle, rates elsewhere are not high. |
The ECB probably won't do very much, maybe one or two rate hikes, and if the Fed keeps tightening then the rate differential won't improve substantially for the euro. |
There is little doubt that firms in the US have plenty of pricing power, given the continued strength of the US consumer. |
There were expectations that we would be in for a reasonably quiet day of trading. Instead, the Australian dollar has been hit by selling ahead of the Easter break, especially against the New Zealand dollar. |
We expect the dollar to remain strong in early 2006. (But) once the U.S. Federal Reserve finishes tightening, the risk is that external imbalances play a greater role in steering currencies, and in that latter backdrop, sentiment toward the dollar may deteriorate. |