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In the past my morning report has been quite easy to write, but with low volatility globally and little movement in currency markets I’m left at times with very little to write about, and that certainly rings true this week. AUD/USD has more or less consolidated in the 0.77’s but the next move remains a mystery, with some thinking we’ll test lower lows on the back of expectations of higher interest rates in the U.S, while the other comes suggests we could see 0.8000 tested once again on the back of stronger commodities prices. Three things however are certain in life, death, taxes and the unpredictability of financial markets. So with that said, expect the unexpected and consider how your business would be impacted with AUD/USD at both 0.7100 and at 0.8100.
Ahead tonight is a speech from ECB President Mario Draghi while in the U.S we’ll see the latest from their monthly Producer Prices Index. A sharp increase in Producer Prices suggests inflation is picking up and higher rates on the cards in the U.S – that would be USD bullish.
AUD EXCHANGE RATES:
AUD/USD – 0.7787
AUD/GBP – 0.5888
AUD/EUR – 0.6565
AUD/NZD – 1.0993
AUD/JPY – 87.605
Gold – A$1658/oz
Silver – A$22.05/oz
WTI – US$51.24/barrel
DATA RELEASES TODAY:
USD – Producer Prices Index at 11.30pm
EUR – ECB President Draghi Speaks at 1.30am
***Above rates are indicative wholesale rates and intended as a guide only***
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Senior Corporate FX Dealer
Phone Patrick – 0431 278 632