Bank of England Governor Mark Carney spoke over night and reassured investors that they will do all they can to ease the fallout from the Brexit vote. Mentioned in the speech was a likelihood that further monetary policy easing was on the way in the form of either interest rate cuts or stimulus from the Bank of England. Not surprisingly we saw the Pound drop again on the comments and the Aussie surge against the Pound by around 1-2%.
Equities posted further gains overnight while iron ore has continued another strong rally this time punching through US54.20 a tonne. It hasn’t been this high since mid-May. Local equity futures point to a strong open with the ASX200 Futures Index up 0.7%.
We have some Chinese manufacturing data due at 11.00am and 11.45am this morning with both tipped to come in at around 50 – the balancing point between where purchasing managers believe they are in expansion or contraction. Later this evening is U.K manufacturing PMI and with the recent Brexit vote and the index hovering around 50 it will be interesting to see if we see a sharp drop on this index as U.K purchasing managers turn rather bearish on the U.K economy.
DATA RELEASES TODAY:
CNY – Manufacturing PMI at 11.00am
GBP – Manufacturing PMI at 6.30pm
USD – ISM Manufacturing PMI at midnight
AUD EXCHANGE RATES:
AUD/USD – 0.7450
AUD/GBP – 0.5584
AUD/EUR – 0.6708
AUD/NZD – 1.0438
AUD/JPY – 76.846
***Above rates are indiciative wholesale rates and intended as a quide only***
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Senior Corporate FX Dealer
Contact Patrick for a quote on 0431 278 632