The Aussie dollar has lost ground again overnight vs. most of the majors succumbing to nothing else but profit taking and a bit of key level resistance. However from a broader perspective, the Aussie dollar is still trading near four month highs vs. the Greenback and EURO, while remaining near three year highs vs. the GBP.
Commodity markets mostly rallied overnight, but iron did fall marginally pegging back a dollar or two but remaining above US$60 a tonne – still well above most of the forecasts for the metal around US$40-US$50 a tonne. Equity markets were mixed with U.S equities mostly flat while European equities went backwards for a second straight session after a solid couple of weeks of gains.
Ahead today is local employment data and the all important unemployment rate, both are due at 11.30am this morning and both are expected to improve marginally from last months reading. Economists are expecting to see about 10,000 new jobs created, hopefully mostly full time jobs, while the unemployment rate should continue to hover just below 6% – around the 5.8% mark. It goes without saying a cracking number this morning will put further wind in the sails for the Aussie dollar and vice versa, so again probably prudent to look at taking some risk off the table and hedging some of your upcoming USD, EUR or GBP exposures.
DATA RELEASES TODAY:
AUD – Employment Change and Unemployment Rate at 11.30am
GBP – Retail Sales at 6.30pm
USD – Philly Fed Manufacturing Index at 10.30pm
AUD EXCHANGE RATES:
AUD/USD – 0.7657
AUD/GBP – 0.5878
AUD/EUR – 0.6782
AUD/NZD – 1.0543
AUD/JPY – 76.612
***Above rates are indicative wholesale rates and intended as a guide only***
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Patrick Downes
Senior Corporate FX Dealer
Compass Markets
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