Please note that the commentary below is factual information provided to a group of readers as a web blog, and where an opinion is expressed by the author, it is GENERAL ADVICE only.
AUD Under Pressure:
I was hoping that I could write a report this morning showing a bit of a recovery in the AUD, however that simply isn’t the case and the AUD remains under significant selling pressure as a result of Trump’s increase in tariffs on Chinese imports to the U.S. Officially the AUD/USD exchange rate is near 2015 lows around the 0.6900 level and it really doesn’t look like any recovery is close. A continued Trade War between the U.S and China, a likely rate cut from the RBA along with a change in government could all see sustained pressure on the AUD particularly against the Greenback. AUD/EUR and AUD/GBP have held up OK given that Europe and the U.K have issues of their own.
No data released so far this week, however that changes this morning with the release of the latest Wage Price Index. The reading is a quarterly number and shows the ‘change in the price businesses and the government pay for labor, excluding bonuses’. It’s a good indication of whether wages are actually growing in Australia. Expectations are that wages will have grown by about 0.6% in the latest quarter, up from last quarter but still very low on a historical basis.
AUD EXCHANGE RATES:
AUD/USD – 0.6908
AUD/GBP – 0.5344
AUD/EUR – 0.6161
AUD/NZD – 1.0527
AUD/JPY – 75.799
All Ords (XAO) – 6,327
Gold – A$1,869/oz
Silver – A$21.33/oz
WTI – US$61.44/barrel
DATA RELEASES TODAY:
AUD – Wage Price Index q/q
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Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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