Moderate strength in US equity markets kept the Aussie dollar supported overnight with the local unit rising to just shy of 92 US cents. A slightly better than expected result in US existing home sales kept equity markets buoyant, supporting key commodities and higher yielding assets. US Existing Home sales fell 5.02 Million in February from a previous 5.05 Million – however still beating estimates of a fall to 5.0 Million. The Richmond Fed Manufacturing rose to an index level of 6 against a previous recording of 2 - against analyst’s expectations of a more moderate rise to 3.
With the Greece saga still at the forefront of investors mind, the Euro failed to see any upside from an improvement in confidence – At the time of writing the Euro is buying 1.3500 US dollars – and remains at the mercy of heightened conjecture ahead of Thursdays ‘Greece rescue’ summit in Brussels.
With no major local economic data today, once again we expect local currency movements to be contingent on equity market movements. With the SPI pointing to a positive start to domestic trade, this should translate to a well-supported Aussie dollar. Barring strong positive momentum in equity markets, it remains questionable whether or not the local unit with gather the steam to break 92 US cents however technical support remains around the 91.5 US cent mark.