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.
AUD Edges Higher:
The AUD has edged higher across the board despite a sell off in both U.S and European equities overnight. The Dow Jones was the best performer managing to lose only 0.33%, while the NASDAQ took the brunt of the losses off nearly 1.5%; a similar story in Europe with stocks down between 0.5% and 1.6%. AUD/USD continues to hover around the 0.6900 figure, while AUD/GBP may come under further pressure tonight with the release of UK inflation hearings at 6.30pm.
The Don’s trade war with China is persisting as front page news in the financial press with the latest reports suggesting an escalation. China appears completely unwilling to go down without a fight in what it sees as unfair tariffs on its exports to the U.S. Locally, Trump is feeling the hurt too with some of the U.S’s largest businesses including Nike and Adidas writing open letters criticising his trade war and tariffs.
RBA Minutes Due:
RBA Monetary Policy Minutes are due out this morning at 11.30am. The RBA left rates on hold at 1.5% earlier in the month citing spare capacity in the economy and improvement in the labour market, however these latest monetary policy minutes should give us a bit more depth and colour around their thought process and perhaps also a hint on the next rate move. The AUD remains entrenched under 0.7000 and it will take quite a reversal in fortunes for this to change.
AUD EXCHANGE RATES:
AUD/USD – 0.6879
AUD/GBP – 0.5401
AUD/EUR – 0.6154
AUD/NZD – 1.0538
AUD/JPY – 75.756
All Ords (XAO) – 6,564
Gold – A$1,849/oz
Silver – A$20.94/oz
WTI – US$63.28/barrel
DATA RELEASES TODAY:
AUD – Monetary Policy Meeting Minutes at 11.30am
GBP – Inflation Report Hearings at 6.30pm
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Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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