AUD/GBP lost another one percent overnight extending losses to nearly 4% since August 16th when the currency pair hit a nearly three year high following Brexit. The GBP was also aided by a boost in equity prices overnight which saw European stocks advance by as much 1.1% while U.S equities were up an average 0.2%. Overall positive sentiment and cheap money is continuing to drive equity markets to dizzying heights, particularly in the U.S with some analysts suggesting U.S equities could be again in bubble territory and due for a correction. I tend to agree.
AUD/USD has done little overnight but does appear to be holding above key support at 0.7600 – over the course of the month AUD/USD has traded mostly between 0.7600 and 0.7750, with 0.7750-ish the highest level in the past 4 months. Make of that what you will.
No data out today again other than some low level Aussie construction work figures. Construction work has been contracting for the most part since early 2014, with the trend likely to continue with this latest reading.
DATA RELEASES TODAY:
No News or Data
AUD EXCHANGE RATES:
AUD/USD – 0.7613
AUD/GBP – 0.5768
AUD/EUR – 0.6734
AUD/NZD – 1.0462
AUD/JPY – 76.335
***Above rates are indicative wholesale rates and intended as a guide only***
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Patrick Downes
Senior Corporate FX Dealer
Compass Markets
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