The Aussie dollar is lower across the board this morning despite broadly stronger commodity prices and a more cautious U.S Federal Reserve. Iron ore however continued to get sold off and is this morning hovering around the US$75 a tonne mark after losing nearly US$20 a tonne since February highs. The lower prices for iron ore suggest the base ingredient for steel has some time to go before we completely move on from the past bear market where prices dipped as low as US$38 a tonne.
Yesterday we saw mortgage growth numbers for the local market and the numbers suggested a contraction of half a percent in the number of new loans granted. The poor reading comes on the back of two months of sub 1% growth and is perhaps slowly painting a picture which many Australians don’t want to know about – and that is that inevitably the housing market bubble will unravel, it’s just very hard to know when.
Ahead this evening is U.K CPI and with the Pound surging in recent weeks a strong reading here could provide further bullish indicators for the U.K’s common currency.
DATA RELEASES TODAY:
GBP – CPI at 6.30pm
AUD EXCHANGE RATES:
AUD/USD – 0.7453
AUD/GBP – 0.5992
AUD/EUR – 0.7032
AUD/NZD – 1.0722
AUD/JPY – 82.671
***Above rates are indicative wholesale rates and intended as a guide only***
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Patrick Downes
Senior Corporate FX Dealer
Compass Markets
Phone Patrick – 0431 278 632
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