Aussie little changed in a quiet overnight trade

Wednesday, Feb 17 2016

There were no data releases from Australia this morning with Aussie being little changed. In a statement on Thursday 11, to the House of Representatives Standing Committee on Economics, Governor Glen Stevens commented on the current economic situation, more or less reiterating the stock RBA stance. The bank has a marginal bias towards easing, due to continued subdued inflation expectations, and stagnant wage growth reflected in labor costs which have changed little in four years.

However, he also pointed out the “modest expansion” in the economy, even in the face of considerable headwinds, including a large contraction on capital spending in the mining sector, restrained public spending and the reductions in national income coming from declining terms of trade. Moody’s Analytics Australia economist Emily Dabbs says the RBA board meeting minutes indicate it has positive outlook on the domestic economy, pushing the currency higher in morning trade.

“There’s also been a little bit of an improvement in global sentiment and after the ruckus in financial markets last week. That’s helped the Aussie go up a little bit,” she said. Ms Dabbs also said rising crude oil prices had driven up commodity currencies like the local unit.

Aussie is currently being traded around 0.7090 area. Pair is likely to find support around 0.7040 handle and resistance above 0.7180 level. Later today, in the US session, Building Permits, Housing Starts, PPI and Industrial Production figures are scheduled for a release, as well as FOMC Meeting Minutes.

Source: FxEmpire.com

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