Peter Dutton, Scott Morrison and Julie Bishop. One of these individuals could be the next Prime Minister of Australia at around 12.30pm this afternoon. Alternatively, stalwart Malcolm Turnbull may survive the challenge and remain as PM, which would mean a National election could be called reasonably soon. The Aussie Dollar certainly didn’t take the leadership turmoil in it’s stride nor the continuing impasse between Trump/China on trade, with the AUD pummelled to the tune of about 1% vs. the majors while our stock market also closed in the red.
A better day could be on the cards today should we see some stability and finality regarding the leadership of the Liberal Party, however as with all things related to politics maybe don’t hold your breath. The ASX is expected to open higher this morning despite European and U.S equities finishing lower. Weaker metals prices also aren’t aiding the Aussie Dollar – with Copper leading metals prices broadly lower.
U.S Core Durable Goods orders released tonight along with a speech from Federal Reserve Chair Jerome Powell. There has been some contention recently about the rate and speed of any further interest rate hikes in the U.S, so this will certainly be watched closely for any indication on the Feds next move. AUD/USD will perform well if we see the fed ratchet back the pace of interest rate hikes.
AUD EXCHANGE RATES:
AUD/USD – 0.7211
AUD/GBP – 0.5637
AUD/EUR – 0.6249
AUD/NZD – 1.0901
AUD/JPY – 80.39
USD/BTC – $6,509
OTHER MARKETS:
All Ords (XAO) – 6,360
Gold – A$1,635/oz
Silver – A$20.02/oz
WTI – US$67.82/barrel
DATA RELEASES TODAY:
USD – Core Durable Goods Orders m/m at 10.30pm
USD – Fed Chair Powell Speaks at midnight
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Patrick Downes
Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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