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.
The AUD fell versus the EURO but rallied against the USD and GBP as weak U.S economic data and another failed Brexit vote overnight weighed on the Greenback and Pound. The latest failed Brexit vote pushes the U.K closer to a hard Brexit unless Theresa May can somehow negotiate a deal that will curry enough favour with both local MPs and the Euro zone chiefs. In the U.S retail sales fell for the first time since March, but the decline was the worst reading since June 2010 – nearly 9 years ago. Producer prices also fell. The poor retail sales reading along with weaker economic data more broadly likely takes any further rate hikes from the Federal Reserve off the table until later in the year. However, expect Fed Chairman Powell to have some comments on the economic data in his next speech.
Stocks & Commodities:
U.S and European stocks again finished the session mixed, while our local market is tipped to open around a 1/3 of a percent lower at 10.00am. Commodities prices have also continued to come off the boil, but Iron Ore is holding above 600CNY a tonne, or US$88 for the 62% fines. The high grade 65% fines is fetching just on US$100 a tonne.
AUD EXCHANGE RATES:
AUD/USD – 0.7075
AUD/GBP – 0.5520
AUD/EUR – 0.6260
AUD/NZD – 1.0358
AUD/JPY – 78.201
All Ords (XAO) – 6,139
Gold – A$1,847/oz
Silver – A$21.99/oz
WTI – US$54.79/barrel
DATA RELEASES TODAY:
GBP – Retail Sales m/m at 8.30pm
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