No report from me yesterday as I had quite a busy morning and was under the pump booking payments and what not.
What you missed was a slump in AUD/USD Wednesday night and unfortunately a further fall in AUD/USD overnight to be below 0.7800 this morning. Comments from Fed Chairman Powell at his inaugural Congressional Testimony suggest as many as 3-4 rate hikes are on the cards in the U.S this year which should support the US Dollar. However what should happen and what does happen is often quite different and that can be seen in AUD/USD at current levels. Strong commodities prices and buoyant demand from China for raw materials is essentially whats keeping the Aussie dollar up – and in my opinion should continue to support the Aussie Dollar. Barring a global meltdown.
However as I’ve mentioned before there are two camps of thought – one who believe AUD/USD has to go lower as US rates rise and the other who believe AUD/USD can move higher with commodities prices and growth around the world.
AUD/EUR which has been in decline for since Feb 2017 appears to have found support around the mid 0.63’s and it did manage to hold this level throughout the whole of February. Where AUD/EUR heads from here is anyones guess but a break below 0.6350 could see AUD/EUR retreat to 0.6200. A break above on perhaps poor European growth figures could see it test 0.6600.
AUD EXCHANGE RATES:
AUD/USD – 0.7760
AUD/GBP – 0.5639
AUD/EUR – 0.6363
AUD/NZD – 1.0763
AUD/JPY – 82.788
USD/BTC – $10,528
Gold – A$1698/oz
Silver – A$21.15/oz
WTI – US$61.45/barrel
DATA RELEASES TODAY:
AUD – Private Capital Expenditure at 11.30am
GBP – Manufacturing PMI at 8.30pm
USD – Fed Chairman Powell Testifies (again) at 2.00am (tomorrow morning)
USD – ISM Manufacturing PMI at 2.00am
***Above rates are indicative wholesale rates and intended as a guide only***
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