Monday, October 6, 2014

Australian dollar has posted gains on Monday, as AUD/USD

The Australian dollar has posted gains on Monday, as AUD/USD is trading in the low-0.87 range. The Aussie posted sharp losses on Friday, losing over 100 points and dipping into 0.86 territory. On the release front, ANZ Job Advertisements, an important employment indicator, posted a solid gain of 0.9% last month. MI Inflation Gauge continues to post weak numbers, posting a gain of 0.1%. AIG Construction Index will be released later in the day. There are no US releases on Monday.
Early on Tuesday, the RBA will be in the spotlight. The Cash Rate is expected to remain at 2.50%, where it has been pegged since July 2013. The RBA has often stated that the Aussie is overvalued and weighing on a recovery, but the currency has lost some 500 points since the last RBA statement in September.