Please note that the commentary below is factual information provided to a group of readers as a web blog, and where an opinion is expressed by the author, it is GENERAL ADVICE only.
What Happened Overnight?:
The AUD is down against the Pound, Kiwi and Yen, but has moved more than half a percent higher vs. the U.S Dollar as the so called Greenback succumbed to a sell-off amid improved risk sentiment and minutes this morning from the U.S Federal Reserve that suggest further rate hikes are no certainty this year in the worlds largest economy. Markets are taking this as a sigh of a relief given the Fed’s history of raising rates til the U.S economic bubble bursts; it happened in the ’87 crash, the dot.com bubble and more recently during the GFC.
Upcoming Economic Data:
More economic data is due out this morning in Chinese CPI and PPI with both consumer and producer prices expected to contract as a result of a broad slowdown in the pace of economic growth in China. Commodities prices and equities were sold off all last year amid weaker Chinese economic data and trade tensions so any surprise to the upside here could see a solid bounce in commodities prices, the AUD and equities.
The local equities market looks set to open flat.
AUD EXCHANGE RATES:
AUD/USD – 0.7144
AUD/GBP – 0.5576
AUD/EUR – 0.6182
AUD/NZD – 1.0531
AUD/JPY – 77.221
USD/BTC – $3,986
All Ords (XAO) – 5,838
Gold – A$1,802/oz
Silver – A$21.95/oz
WTI – US$52.39/barrel
DATA RELEASES TODAY:
CNY – CPI & PPI at 12.30pm
USD – Fed Chair Powell Speaks at 4.00am (tomorrow morning)
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Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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