The big mover overnight was the GBP with the Pound recovering from recent falls to the tune of around 1.5% thanks to improved economic data released overnight. The data suggested strong core growth in everything from consumer prices and retail prices to even house prices which surged to an annualised growth rate of 5.6%. AUD/GBP as a result is also 1.5% lower or thereabouts and remains in what appears to be a bearish down trend. Time will tell if this continues however those clients with GBP exposures should monitor closely.
We have a ton of data out over the next 24 hours with local consumer sentiment figures released by Westpac at 10.30pm. This data is closely followed by Chinese industrial production numbers which have been on the improve lately. The big data release/announcement however is of course U.S CPI and Retail Sales figures along with the latest rate adjustment from the U.S Federal Reserve. Fed Chairwomen Janet Yellen is widely tipped to raise rates by 25 basis points once again which would take the U.S Fed Funds Rate to 1.25% just 25 basis points shy of the Aussie Cash Rate. Despite the move being priced into the market we should still see a bounce in the USD if the U.S Fed do indeed raise rates. This all happens at 4.00am AEST.
DATA RELEASES TODAY:
AUD – Westpac Consumer Sentiment at 10.30am
CNY – Industrial Production at midday AEST
GBP – Average Earnings Index at 6.30pm
USD – CPI & Retail Sales at 10.30pm
USD – Fed Funds Rate & FOMC Statement at 4.00am (tomorrow morning)
AUD EXCHANGE RATES:
AUD/USD – 0.7504
AUD/GBP – 0.5877
AUD/EUR – 0.6690
AUD/NZD – 1.0409
AUD/JPY – 82.637
***Above rates are indicative wholesale rates and intended as a guide only***
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