Market Update – 1st February 2018 – AUD & Equities Stabilise As U.S Fed Leave Rates On Hold At 1.5%

Frenzied selling over the past few days thankfully cooled overnight as U.S preliminary jobs numbers beat expectations and the U.S Federal Reserve left rates on hold at 1.5% amid surging bond yields that had perhaps ruffled some feathers. Last night’s FOMC meeting was the last meeting to be led by Janet Yellen as she vacates the position for incoming Fed Chairman Jerome Powell who will be sworn in Monday.

Overall markets are looking a decent bit healthier today, but other than a stable AUD/USD other Aussie crosses have continued to decline. AUD/EUR and AUD/GBP are now back below 0.6500 and 0.5700 respectively and remain in a bearish down trend which may continue as growth picks up in the Eurozone and the U.K. Those looking to purchase EURO or Pound may be prudent to look at hedging exposures sooner rather than later via a Forward Contract.

Ahead today is local Building Approvals numbers followed by the RBAs Commodity Prices Index at 4.30pm this afternoon. We’ll then see manufacturing data later this evening out of the U.K and the U.S.

AUD EXCHANGE RATES:

AUD/USD – 0.8057

AUD/GBP – 0.5676

AUD/EUR – 0.6490

AUD/NZD – 1.0932

AUD/JPY – 87.982

USD/BTC – $9,960

COMMODITIES: 

Gold – A$1669/oz

Silver –  A$21.53/oz

WTI – US$64.73/barrel

DATA RELEASES TODAY:

AUD – Building Approvals at 11.30am

AUD – Commodities Prices Index at 4.30pm

GBP – Manufacturing PMI at 8.30pm

USD – ISM Manufacturing PMI at 2.00am (tomorrow morning)

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

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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