I hope you all enjoyed the Queens Birthday long weekend. For me it was all about family and food with a trip down to the very chilly Phillip Island; in fact we actually had a swim with the water temperature around 15 degrees Celsius. Invigorating to say the least.
On to the matter of markets and Tuesday morning sees AUD steady against the USD but sharply higher against the GBP (compared to last Thursday) as a result of a less than impressive hung parliament in the U.K. The hung parliament will no doubt make Theresa May’s Brexit negotiations just that little bit tougher and hence the GBP is again out of favour.
Other than that, iron ore prices remain around 420 Yuan a tonne or in the mid $50’s a tonne vs the Greenback. The Aussie probably needs another strong bounce in commodities if it’s to push much higher and it’s anyone’s guess as to if or even when this recovery in commodity prices will take place, but looking at 2016, the second half was certainly good for commodities prices.
DATA RELEASES TODAY:
AUD – NAB Business Confidence at 11.30am
GBP – CPI at 6.30pm
USD – PPI at 10.30pm
AUD EXCHANGE RATES:
AUD/USD – 0.7511
AUD/GBP – 0.5923
AUD/EUR – 0.6700
AUD/NZD – 1.0442
AUD/JPY – 82.556
***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