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The AUD has drifted marginally lower over the past 24 hours – a result of waning optimism about a proposed trade deal between China and the U.S in which China is said to have agreed to increase it’s “purchases of US farm products” among other things. Stock markets also dipped, but again not by much with the biggest loser being the S&P 500 which lost only 0.14%. Our local market is set to open around 0.3% lower today after a strong day yesterday.
On the geopolitical front and while protests in France have receded recently, far reaching protests continue to flair in Hong Kong and more recently Ecuador where we have seen massive protests against austerity measures and a scrapping of fuel subsidies. The clashes certainly give us all a bit of perspective on how lucky we are to live in a very stable economic environment like that in Australia. And also how lucky we are to have a reasonably stable local currency in the AUD.
RBA Minutes Due:
Minutes from the latest RBA meeting are due at 11.30am this morning and should give us some more insight into the reasoning behind the RBA’s second rate cut in four months. Expectations are that stagnant wage growth and continued sluggish retail spending is behind the reasoning to cut rates. How much further the RBA cut rates remain to be seen but we will certainly get more clarity as to whether or not more cuts are in the pipeline with these latest minutes.
AUD EXCHANGE RATES:
AUD/USD – 0.6744
AUD/GBP – 0.5331
AUD/EUR – 0.6115
AUD/NZD – 1.0727
AUD/JPY – 73.140
All Ords (XAO) – 6,757
Gold – A$2,203/oz
Silver – A$26.06/oz
WTI – US$53.51 barrel
DATA RELEASES TODAY:
AUD – Monetary Policy Meeting Minutes at 11.30am
GBP – BOE Gov Carney Speaks at 7.30pm
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Senior Corporate FX Dealer
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