Stocks, commodities and the Aussie dollar rebounded this morning thanks to the U.S Federal Reserve, who decided at 4.00am AEST to again leave rates unchanged at 0.5%. The news was sort of expected, but a bit of risk aversion had been priced into AUD/USD leading up to the announcement with the obvious risk being a sharp move to the downside if the Fed lifted rates by 25 basis points or more. Fortunately for importers this didn’t happen and AUD/USD is now a solid 1% higher than this time yesterday.
Obviously it presents another great opportunity for importers looking to hedge exposures so please do get in touch if you’d like some Forward Contract quotes.
Ahead today is perhaps a maiden speech from new RBA Gov. Lowe who is due to testify before the House of Representatives in Canberra this morning. No doubt he’ll be grilled on the economy and his monetary policy plans.
DATA RELEASES TODAY:
AUD – RBA Gov. Lowe Speaks at 10.00am
EUR – ECB President Draghi Speaks at 11.00pm
AUD EXCHANGE RATES:
AUD/USD – 0.7630
AUD/GBP – 0.5852
AUD/EUR – 0.6817
AUD/NZD – 1.0400
AUD/JPY – 76.613
***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 – +61 03 9099 8459
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