Global Themes

AUD

Aussie back at lows as greenback stages comeback

The AUDUSD fell back to one-month lows overnight as weakness in international sharemarkets caused investors to move into the “safe haven” US dollar.

The US dollar has been recently supported thanks to its relatively high interest rates and the fact that US economic growth has remained stronger than most.

Overnight, a large fall in UK economic growth figures again illustrated the US economy’s relative outperformance as key global markets suffered a big slowdown in activity in the last quarter of 2018.

Brexit bash

The AUDUSD fell 0.4% in its fourth-straight day of losses.

Aussie was stronger in other markets with the AUDCHF up 0.1% and the AUDJPY up 0.2%.

The Aussie’s best gains were against the British pound after December economic growth fell a whopping 0.4% as worries about Brexit hit business confidence.

Critical confidence

Today’s local focus will be on the Australian business confidence figures after last month’s reading saw the biggest fall since the global financial crisis.

The business confidence figures are due at 11.30am AEDT.

Otherwise, central banks will be key, with the Bank of England governor Mark Carney and US Federal Reserve chairman Jerome Powell both speaking overnight.

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