The Australian Dollar managed to extend its recent gains in Monday’s Northern Hemisphere trading and ended up joint strongest of the major currencies we track here, along with the NZD. More than half its rise against the US Dollar had already taken place before London arrived at work. AUD/USD had risen from around 0.7910 at the Sydney open to 0.7950 by the time the first Europeans got to their desks. As the rising EUR continued to pressure the USD index, so the AUD rose to an intra-day high in New York of 0.7975; the highest since September 21st.
Aside from the general weakness of the US Dollar after the ECB’s pre-announcement of a change of forward guidance later in the year, the main driver of the Australian Dollar was continued strength in the gold price. The yellow metal began last week at $1318 per ounce and after dipping to $1309 on Wednesday, it then rose persistently and virtually without correction up to a high of $1337 on Friday; the highest since September 10th 2017. Yesterday, gold added another $5 to $1342 to be up $33 in just four trading sessions.
In a week which will be dominated locally by the December employment report on Thursday, there’s still plenty of second and even third tier data to keep the statistics enthusiasts occupied. Today we’ll see monthly motor vehicle sales. The Australian Bureau of Statistics doesn’t usually provide the level of colour, interest and general wackiness of its counterpart in New Zealand. It drily defines passenger cars, for example, as “vehicles designed primarily for the carriage of people, such as cars, station wagons and people movers. Also includes four-wheel drive passenger vehicles not classified as SUVs.” In November there were a seasonally-adjusted 36,565 passenger vehicles registered, 39,106 SUV’s and 23,384 ‘other vehicles’ to give a total of 99,055. This was a 0.1% increase m/m and a 2.1% rise y/y. There are no consensus forecasts for the December numbers.
This Tuesday morning, the AUD opens in Asia at USD0.7970 with AUD/NZD at 1.0910 and GBP/AUD1.7315.