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.
Big Week For Local Data:
Morning all – hope you had a relaxing and enjoyable weekend. AUD/USD is hovering around the 0.6700 level, while the other majors continue to gyrate on news flow. AUD/JPY is off some 300 points since pandemic fears were first raised in the middle of January and hasn’t really recovered since.
Nothing out today, but we have a bit of economic data due out over the course of the week starting with RBA monetary policy minutes at 11.30am tomorrow morning. The RBA left rates on hold at 0.75% for the third consecutive meeting last month, however economists predict another rate cut could be on the way given the dual impact of the bush-fires and the coronavirus. The RBA is good at telegraphing it’s moves, so perhaps this morning some breadcrumbs can be found in the meeting minutes which will give us an idea when the next cut will occur?
Wages & Employment:
Wage prices and employment numbers will be released later in the week; Wednesday and Thursday respectively. These two are what the RBA is watching most closely, to avoid another rate cut we’ll need to see significantly higher wages and employment, if not then another rate cut is a lock which in turns me a lower AUD. As a result expect some AUD volatility heading into these two announcements.
AUD EXCHANGE RATES:
AUD/USD – 0.6690
AUD/GBP – 0.5120
AUD/EUR – 0.6165
AUD/NZD – 1.0395
AUD/JPY – 73.526
All Ords (XAO) – 7,227
Gold – A$2,356/oz
Silver – A$26.39/oz
WTI – US$52.45 barrel
DATA RELEASES TODAY:
ALL – No data today
USD – Bank Holiday tonight
Sign up for a Compass account today and access some of the most competitive rates in the business and arguably the best service.
Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
DISCLOSURE AND DISCLAIMER – GENERAL ADVICE WARNING
The information provided in this report has been prepared without taking into account your particular objectives, financial situation or needs. You should consider whether our products are appropriate for you and read the FSG and PDS which are available on this website.
This report and must not be copied, either in whole or in part, or distributed to any other person.
All references to prices, amounts and currency are in Australian dollars unless otherwise noted.
This report is provided for Australian residents only and is not intended for use by residents of any other country.