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January 2017

Aussie dollar stable after mixed data

Published: Tuesday 10 January 2017

  • Aussie dollar stable after mixed data
  • Sterling still sliding after UK Prime Minister’s comments

The Sterling – Euro rate has taken a battering over the last few days. You will not be surprised to hear that uncertainty over Brexit is at the heart of the Pound’s problems. That is going to be the standard line in reports for the next couple of years. However, there will be ups as well as downs, and that volatility is going to be the opportunity for both buyers and sellers. Tuesday promises to be a quiet one as far as top tier data is concerned, so the Pound may well meander in tight ranges for now. 
 
We did get some interesting data overnight, though. Australian Retail Sales moderated in November to growth of just 0.2%. That was well below market expectations, although the annual growth rate is 3.3% and that’s pretty healthy. In spite of this slightly dulled set of data, most analysts believe the Australian economy is on a good footing for the year ahead and the Aussie Dollar is still strong.
 
The Australian Dollar didn’t advance much, though, because Australia is reliant to a large degree on China’s importers and we also received Chinese inflation data for December overnight. That was also worse than expected. The numbers matched the November data but many were expecting more recovery in the Chinese economy.
 
Aside from these morsels, there isn’t a lot to get excited about today. I’ll leave you though with the unintended consequences of new technology. The Amazon Echo system is like a voice-activated-personal-assistant-genie-shopping-guru thing. Your wish is its command. However, a San Diego TV station has received complaints after a number of people found their own Echos had ordered a particular dolls’ house after the TV station talked about it in language that prompted the machine to order the products. That’s a great marketing thing, isn’t it. If advertisers use the right words in the right order, they can bypass the consumer and get their gadgets to order more gadgets. I am sure that is where Cyberdyne Systems started in the Terminator movies.
 
The future
A robot walks into a bar, orders a drink, and lays down some cash.

Bartender says, "Hey, we don't serve robots."

The robot says, "Oh, but someday you will."

Daily Currency Insight by David Johnson

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