DAILY CURRENCY OUTLOOK

* Aussie opens slightly lower despite RBA rate hike

* Attention turns to Australian GDP numbers today

* Focus very much on the Fed meeting next week

The AUD opened this morning slightly lower against all major currencies despite yesterday’s interest rate rise by the RBA. Following the announcement and accompanying statement (in which the RBA said, not surprisingly, further increases in 2023 are expected) the Aussie rallied slightly to 0.6743 however it failed to kick on and opened this morning below yesterday’s close of 0.6730. Not that long ago, any increase in interest rates and higher commodity prices that we are currently seeing (especially Iron Ore, Gold and Coal – all major Australian exports) was good news for the AUD however, keeping the Aussie in check is the USD story. Strong US data late Monday, which followed better than expected US job numbers for November last Friday, have markets once again second guessing whether the US Fed will use their final meeting next week (13-14 December) to ease back on their aggressive rate stance or at the very least on their commentary. Today we have the release of Australian GDP numbers for Q3. Any number on either side of expectations could see some short-term moves, but the focus very much remains on next week.