Local market and AUD track US higher

Local market and AUD track US higher

By William Leys (Premium Client Manager, CMC Markets)
14 June 2013

The Australian market is experiencing some welcome relief this morning, following the solid gains posted in the US overnight.

Wall Street rallied after the release of better than expected retail sales and unemployment figures. This data brightened the outlook for US growth and perhaps briefly distracted investors from the ongoing stimulus saga. This shift back to risk-on sentiment is likely to set the tone for the rest of the world today.

Locally, the big miners are trading up with some gusto after being heavily sold off yesterday. Financials are also pushing the index higher. With no major local economic data due out today, the current positive momentum should see the market end the last day of the week in the green.

It seems the news coming out of the US struck the right chord for the AUD, with the local unit up over 2 cents since yesterday. The data was good enough to initiate the return to a risk-on sentiment but not good enough to immediately threaten the Fed’s stimulus plans, which would strengthen the greenback at the expense of the Aussie. This delicate balance has been a rarity of late.

www.cmcmarkets.com

ENDS

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