Market Update – 1st August 2016 – AUD/USD Test 0.7600 Again On Poor U.S GDP Numbers

Global equities pushed higher again Friday evening with Europe leading the way up as much as 0.8%, while in the U.S stocks pushed marginally higher with the S&P 500 the best performer up a modest 0.16%.

U.S GDP was the big data release on Friday evening and again showed the U.S economy was simply “muddling through” with the latest quarter showing only a 1.2% advance in GDP, well below economists expectations of closer to 2.6%. The Greenback fell across the board following the GDP data as traders paired bets that we’ll see a rate hike from the Federal Reserve before 2017, while AUD/USD rallied towards 0.7600 on the mediocre GDP figures.

Final Note: 

As importers however we should certainly not get complacent with the Aussie dollar and 0.7600 has proven to be a key level of resistance. With building approvals, trade balance figures and a likely 25 basis point cut from the RBA tomorrow afternoon it may be worth while taking a bit of risk off the table and covering any USD exposures you may have. Call me if you’d like to discuss – 0431 278 632

DATA RELEASES TODAY:

CNY – Manufacutring PMI at 11.00am

GBP – Manufacturing PMI at 6.30pm

USD – ISM Manufacturing PMI at midnight

AUD EXCHANGE RATES:

AUD/USD – 0.7596

AUD/GBP – 0.5745

AUD/EUR – 0.6799

AUD/NZD – 1.0557

AUD/JPY – 77.765

***Above rates are indiciative wholesale rates and intended as a guide only***

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Patrick Downes

Senior Corporate FX Dealer

 Compass Markets

Contact Patrick for a quote on 0431 278 632

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