Market Update – 13th October 2017 – Stronger Iron Ore Prices See AUD/USD Back Above 0.7800, But For How Long?

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Just when I mention the AUD has appeared to consolidate in the 0.77’s vs the Greenback surely enough we bounce higher proving again the unpredictability of financial markets and indeed also the Aussie dollar.  We have rallied pretty much across the board with the AUD higher against the USD, EURO and Pound despite stronger than anticipated U.S economic data released last night. The data showed Core PPI beating estimates coming in at 0.4% vs. the expected 0.2%, while weekly unemployment claims declined to 243,000. Overall it continues to paint a rosy picture of the U.S economy which may see interest rate expectations remain on track, i.e. expect further rate hikes from the U.S Fed over the next 12 months.

Ahead this evening is more AUD/USD sensitive economic data with U.S CPI and Retail Sales due at 10.30pm. The market is expecting further growth in both of these economic indicators with core retail sales anticipated to hit 0.9% or thereabouts (core retail sales strips out Automobile sales, but with it included that figure rises to 1.7%), while core CPI (which takes out food and energy) is tipped to come in at a robust 0.2%.

AUD EXCHANGE RATES:

AUD/USD – 0.7819

AUD/GBP – 0.5894

AUD/EUR – 0.6609

AUD/NZD – 1.0963

AUD/JPY – 87.791

COMMODITIES: 

Gold – A$1653/oz

Silver –  A$22.03/oz

WTI – US$50.98/barrel

DATA RELEASES TODAY:

USD – Retail Sales & CPI at 10.30pm