The Aussie is rising on the greenback fall, but experts are divided on what effect commodity prices should be having.
A wealth of economic data in both Australia and the US features in this, the last week of the year of anything meaningful before late January.
Morgan Stanley and Lehman Brothers see the euro strengthening further against the US dollar in the short-term, but a soft landing in the US should see a reversal next year.
More soft economic news saw the greenback fall to a 14-year low against the sterling, and gold punch through US$640/oz resistance as if it were a wet paper bag.
Morgan Stanley’s new target suggests 9% appreciation should be expected from US equities in the year ahead. Investors are advised to go Overweight Energy.
Positive GDP data buoyed traders last night as a soft landing scenario for the US economy gained support.
Weekly musings from your editor.
Stephen Koukoulas will be off to London soon following a promotion at TD Securities.
Weakening retail and a lower greenback saw Wall Street give some back after four days of indulgence.
After a slow week last week, economists are back in the frame as a raft of data are released here and in the US. Local focus will be on capex.