Three interest rate decisions over the next 24 hours could shape the Aussie’s movement over the next month or so, with Japan, the U.S and New Zealand all deciding on where if at all the next interest rate move will be. Expectations are that Japan will move rates further negative today, which could provide a boost in AUD/JPY, while in the U.S early tomorrow morning bets are down to a 20% likelihood that we’ll see a rate hike from Janet Yellen’s Federal Reserve. RBNZ are not expected to move.
The Aussie dollar has continued on it’s little run higher against the majors ahead of the Fed interest rate decision and it sort of feels like we could expect more of the same today and tomorrow. But, feeling something is different to knowing something and the risk remains that Janet Yellen could surprise the market with a rate hike. If she does, its fair to assume that AUD/USD will drop like a rock, potentially by up to two cents.
Stocks were flat overnight however commodities led by the energy sector moved higher – iron ore remains above government forecasts at US$55 a tonne.
DATA RELEASES TODAY:
JPY – BOJ Interest Rate Decision
USD – Fed Reserve Interest Rate Decision at 4.00am
NZD – RBNZ Interest Rate Decision at 7.00am (tomorrow morning)
AUD EXCHANGE RATES:
AUD/USD – 0.7557
AUD/GBP – 0.5817
AUD/EUR – 0.6774
AUD/NZD – 1.0327
AUD/JPY – 76.856
***Above rates are indicative wholesale rates and intended as a guide only***
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