An absence of economic data over the past 24 hours hasn’t stalled the Aussie Dollars relentless push higher with the local currency up around half a percent across the board. AUD/GBP is back above 0.6200 while AUD/EUR and AUD/USD look destined to consolidate in the 0.72’s and 77’s respectively should this mornings monetary policy minutes prove bullish or overly optimistic.
The monetary policy minutes to be released at 11.30am are from the latest cash rate decision in which the RBA chose to leave rates on hold at 1.5%. Given this we’ll be looking for indications on where the RBA see the economy headed as well as any views they might have on the U.S economy and the local housing market which is certainly becoming a hot issue given affordability questions.
Other than that we have U.K CPI a little later this evening with markets expecting CPI growth of around 2.1%. Since late 2015 UK CPI has been on a steep upward curve and the latest reading if it comes to fruition would be the best reading since late December 2013. AUD/GBP is certainly at risk to a downside movement should this strong data transpire but given economic headwinds as a result of Brexit any losses will likely be constrained.
DATA RELEASES TODAY:
AUD – Monetary Policy Minutes at 11.30am
GBP – CPI at 8.30pm
AUD EXCHANGE RATES:
AUD/USD – 0.7689
AUD/GBP – 0.6213
AUD/EUR – 0.7157
AUD/NZD – 1.0921
AUD/JPY – 86.564
***Above rates are indicative wholesale rates and intended as a guide only***
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Patrick Downes
Senior Corporate FX Dealer
Compass Markets
Phone Patrick – 0431 278 632
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