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.
Fed Chair Powell Speaks:
Overnight the Aussie Dollar fell, U.S equities traded sideways and commodity prices lost ground ahead of an anticipated and all important speech tonight from U.S Fed Chair Jerome Powell. Markets are hoping the 18 month veteran of the Fed will announce impending lower interest rates and a new round of QE (quantitative easing) in a bid to raise growth and inflation metrics in the worlds largest economy. Should Powell concede and show a more dovish than usual view of the U.S economy you could probably expect markets to rise as opposed to fall given that whats been supporting markets since the GFC has been easy money and loose credit from the Fed. More of that will be cheered by the market and traders alike.
The Aussie Dollar is continuing to trade in a tight range vs. the Greenback and we saw more of the same overnight. Since the start of August we’ve trade as low as 0.6670 and as high as 0.6820, but for the most part (90%) trading has occurred in an even tighter range between 0.6730 and around 0.6800, which is pretty unusual for a currency as usually volatile as the AUD. I sense we’ll break out of this range tonight (which way I don’t know, but I’ll tip higher) with the Fed’s speech at midnight, Jackson Hole Symposium and Day 1 of the G7 Meeting in Biarritz, France.
AUD EXCHANGE RATES:
AUD/USD – 0.6727
AUD/GBP – 0.5483
AUD/EUR – 0.6066
AUD/NZD – 1.0579
AUD/JPY – 71.601
All Ords (XAO) – 6,593
Gold – A$2,217/oz
Silver – A$25.23/oz
WTI – US$55.34/barrel
DATA RELEASES TODAY:
USD – Fed Chair Powell Speaks at midnight
ALL – Jackson Hole Symposium & G7 Meetings
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