Although the Aussie couldn’t hold on to its best levels against a very strong US Dollar, Tuesday was actually a pretty good day. It held its ground against the buoyant NZD and finished up against every major currency we track here with its biggest percentage gains versus the EUR (+0.7%) CAD and GBP (both +0.5%). AUD/USD peaked at 0.7576 before slipping back to 0.7548 but this morning in London it’s back testing that technical resistance point once again.
One of the reasons for Aussie strength is the takeover of Sir Frank Lowy's famous Westfield Corporation in a deal said to be worth AUD$32.7 billion. Founded in Sydney in 1953, Westfield currently has interests in 35 shopping centres in the US and the UK and its chairman received a knighthood from the Queen at Windsor Castle just a few days ago. Sir Frank was recognised for his contribution to the British economy after Westfield built two enormous shopping centres, one in London's Shepherd's Bush and one in Stratford City. French company Unibail-Rodamco will acquire Westfield for a combination of shares and cash, and though the 35% cash element won’t be paid until next year, the announcement has helped lift the AUD.
Looking forward to tomorrow’s Australian economic data, consensus estimates are for a +15k increase in employment with the jobless rate steady at 5.4%. Unlike many countries elsewhere in the world, Australia doesn’t produce monthly earnings data alongside the labour report; instead the wage price indices are available only quarterly and we’ll have to wait until February for the latest updates.
For today, AUD/USD opens in London up around half a cent at 0.7575 with GBP/AUD at 1.7605.