Aussie dollar continues to trade above 63 US cents

Daily Currency Update

The Australian dollar is slightly weaker this morning when valued against the Greenback. The Aussie dollar fell against the Greenback on Friday in the mid-North American session after the pair hit a daily high of 0.6328. Still, risk-aversion amidst heightened tension in the Middle East weighs on the AUD/USD, which trades at 0.6318, down 0.17%. In other news, the Australian sharemarket plunged on Friday to finish the week 2.1 per cent lower as traders worry about the ongoing conflict. The S & P/ASX200 fell 1.2 per cent to 6,900.7 points, while the All Ordinaries also lost 1.2 per cent to sit at 7,089.7 points. The benchmark was a sea of red, with 10 of 11 industry sectors falling. Energy stocks were the sole winners, rising 0.16 per cent as Brent crude futures jumped 1 per cent to $US93.27 a barrel. The Greenback remains strong as risk appetite keeps US equities in the red, while US Treasury bond yields dropped.
On the data front, there are no scheduled releases today. Looking ahead this week and on Tuesday we will see the release of the Flash Manufacturing Purchasing Managers' Index (PMI) which is a survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. The Reserve Bank of Australia (RBA) Governor Michele Bullock is also due to speak at the Commonwealth Bank of Australia Global Markets Conference, in Sydney. As head of the central bank, which controls short term interest rates, she has more influence over the nation's currency value than any other person. On Wednesday all eyes will be on the Australian Bureau of Statistics when they release the Consumer Price Index (CPI) which is forecast to see YOY inflation rise from 5.2% to 5.4%.