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.
U.S Fed Dovish:
Yesterday saw the latest from the U.S Federal Reserve, who in the early hours of yesterday morning decided to keep rates on hold for a third consecutive month at 2.5%, while at the same time ratcheting down inflation expectations and the likelihood we’ll see any further significant increases in U.S interest rates. In fact the latest estimates suggest one hike over the next several years. The AUD rallied vs the Greenback on this reduction in interest rate expectations but remains under pressure locally due to the weak housing market and weaker consumer spending.
Aussie Employment Flat:
Aussie employment data was released yesterday morning and showed only a small increase in the number of employed people, however that increase of about 4,000 jobs helped move the needle and saw the unemployment rate drop to 4.9% in seasonally adjusted terms.
Overnight stocks in the U.S had a very good session thanks to the Federal Reserve stance on interest rates yesterday morning. The reason being that stocks perform better when interest rates are stable or falling as opposed to rising. Our local market should open around half a percent higher this morning.
European economic data out of Germany and France is out later this evening.
AUD EXCHANGE RATES:
AUD/USD – 0.7080
AUD/GBP – 0.5403
AUD/EUR – 0.6220
AUD/NZD – 1.0310
AUD/JPY – 78.487
All Ords (XAO) – 6,253
Gold – A$1,841/oz
Silver – A$21.75/oz
WTI – US$59.87/barrel
DATA RELEASES TODAY:
EUR – French and German Manufacturing & Services PMI at 7.15pm
Sign up for a Compass account today and access some of the most competitive rates in the business and arguably the best service.
Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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