The Australian Dollar opened slowly without much action, but came to life late in the afternoon session reaching a high of 1.0377 against the greenback. Pushing the positive risk flows into the ANZ was the Chinese Inflationary Data released which came in just above forecast however speculation has continued to mount that the Chinese Government will at some stage seek to ease policy to help spur growth.
Giving back its earlier gains against the US Dollar as it entered foreign session, weak US data in the form of Unemployment claims and Retail Sales managed to erode some of the earlier optimism as the Australian Dollar managed open and close at the same level, around 20 basis points higher at a rate of 1.0331.
The US session and the EU are expected to be quiet on Friday without much news or data. Markets and currencies should continue to trade with little change and low volume.
Expect a range today of 1.0280 – 1.0380 with little activity in the early week