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.
No economic data out overnight, however U.S retail sales numbers were released Friday evening and came in bang on estimates at 0.2% for the month. All action and eyes though seem to be on the U.S Federal Reserve and their rate announcement early Thursday morning. Surveyed economists predict the Fed will continue to hike rates regardless of the recent selloff in U.S and global equities and despite Donald Trump’s objections. If the Fed move again, U.S interest rates will be at 2.5% on Thursday morning, 1% higher than the RBA set interest rate here.
Markets sold off overnight along with commodities led by oil and the AUD as traders worry about the likely impact a further rate hike from the Fed might have on U.S growth and the global economy more broadly. We still don’t know if this is a fully fledged equities bear market, but it is starting to look like it. The positives are that global growth is still picking up and interest rates remain low from a historical perspective. We really are living through interesting times.
RBA monetary policy minutes are due out this morning at 11.30am and will be read thoroughly for an indication on the RBA’s next move in interest rates – expect volatility around this time.
AUD EXCHANGE RATES:
AUD/USD – 0.7144
AUD/GBP – 0.5647
AUD/EUR – 0.6280
AUD/NZD – 1.0510
AUD/JPY – 80.637
USD/BTC – $3,512
All Ords (XAO) – 5,732
Gold – A$1,737/oz
Silver – A$20.44/oz
WTI – US$49.50/barrel
DATA RELEASES TODAY:
AUD – Monetary Policy Meeting Minutes at 11.30am
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Senior Corporate FX Dealer
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