Australian FOREX Daily Outlook 31/08/2006

CURRENCY TRADING SUMMARY –31 AUGUST06 (05:00GMT)

• U.S. Dollar Trading (USD) remained largely steady against the majors in the overnight foreign exchange trading session as a host of indicators from the US failed to create any substantial volatility in the markets. US GDP for the second quarter was revised up to 2.9% from 2.5% but less than the 3.0% expectation. Core PCE for the second quarter came in on expectations at 4.1%. In other markets, the Dow Jones traded in a tight range rising by 13pts and the NASDAQ also rose by 13pts. Crude oil finished over US$70 a barrel at US$70.03, up US32c, although during the session it did trade below US$69 a barrel. Looking ahead, Personal income/spending and the Core PCE index for Jul are due out tonight.
  

• The Euro (EUR) traded within a low of 1.2813 and a high of 1.2853, before closing at 1.2832 in the New York session. Looking ahead, Eurozone GDP, HICP estimate, and ECB interest rate announcement are due out today.
  

• The Japanese Yen (JPY) traded within a low of 116.61 and a high of 117.28 versus the dollar, before closing at 117.15 in the New York session. On the data front, PMI manufacturing came in at 54.6, down from previous result of 55.7 in July. Industrial production came in at a disappointing -0.9% for July from a 0.7% estimate.
  

• The Sterling (GBP) traded within a low of 1.8873 and a high of 1.9061, before closing at 1.9043 in the New York session. On the data front, GfK consumer confidence is due out today.
  

• The Australian Dollar (AUD) traded within a low of 0.7620 and a high of 0.7633, before closing at 0.7632 in the New York session.
  
• Gold (XAU) strengthened by US$7.00 to US$616.10 an ounce on the back of a weaker US Dollar.