Welcome to the 1st Contact Forex Currency Review for 11 March 2014.
The Aussie dollar showed noticeable resilience earlier today after worries about a slowdown in China’s economy hit commodity prices hard.
Australia and China have strong trade links and the Aussie’s performance is seen as a proxy of Chinese growth.
Overall, the Aussie is up by 1 percent so far this month, this is due to a run expectation-beating data on home shores.
The Reserve Bank of Australia is not pleased with the Aussie’s current strength as it favours a weaker currency to help support the economy.
The RBA believes the most prudent course is a period of stability and kept interest rates at a record low of 2.5 percent at its policy meeting last week.
Expect a quiet week for the Aussie’s economic calendar compared to last week.
The National Australia Bank’s Business Confidence index released today was lower than expected.
Key Events for the week
Wednesday’s key events include Westpac Consumer Sentiment and AUD Home Loans.
Thursday features MI Inflation Expectations, the Employment change and the Unemployment Rate.
Friday offers nothing noteworthy.
That’s all for today, join us next week for more currency news and find us on Twitter for regular updates.