Currency Update: AUD is trading at USD 0.9700 after release of a disappointing US employment report. In currency markets, weak US payrolls result saw USD...

Bell Potter
Bell Potter Stockbroker

Currency Update: AUD is trading at USD 0.9700 after release of a disappointing US employment report. In currency markets, weak US payrolls result saw USD weaken across a broad front. Bulk of employment gains were in the services sector (+100k). Employment recovery has been slowing, with payrolls rising 143k per month on average in Q3 compared with 195k per month in 1st half of 2013. In Australia, Coalition announced that it would lift debt ceiling limit to AUD500bn, up from AUD300bn. They also announced panel & scope for its Commission of Audit report to examine possibility of spending cuts, privatising federal assets, reducing middle class welfare & decreasing the size of government. While AUD is contemplating 0.9725 resistance, risk is while importer offers may initially constrain gains, grind lower in the USD is set to continue and that this will eventually carry AUD higher. Today's Forecast Range: USD 0.9675 - 0.9755

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