The Aussie dollar appears to have now consolidated below 0.7400 US cents suggesting support for the local currency may be waning amid continued poor economic data, slow retail sales and lagging commodity prices. Commodity prices which had been soaring over the past 12 months came to a screeching halt in February and have failed to win back the momentum that took iron ore from around US$40 a tonne to US$90 a tonne by Feb.
Chinese industrial production is released around midday today and is forecast to show continued signs of recovery with economists expecting to see a figure of around 7.00% year on year. Last months reading was 7.6% which was the best number since January 2015 and could suggest the China growth story is not yet finished-and of course this benefits the Australian economy and commodities prices.
DATA RELEASES TODAY:
CNY – Chinese Industrial Production at midday
GBP – Prime Minister May Speaks at 5.00am (tomorrow morning)
AUD EXCHANGE RATES:
AUD/USD – 0.7341
AUD/GBP – 0.5685
AUD/EUR – 0.6711
AUD/NZD – 1.0725
AUD/JPY – 83.231
***Above rates are indicative wholesale rates and intended as a guide only***
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Patrick Downes
Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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