Global equities performed very well overnight with all European and U.S indices managing to finish the session up bar the U.K FTSE which finished flat. The Nasdaq was the best performer, while the Dow Jones again surged towards the magical 20,000, a figure it has yet to ever reach. Commodities also performed well again, with the composite Bloomberg Commodity Index up around 0.2%.
Local economic data starts to trickle in today with CPI/Inflation figures due at 11.30am from the ABS. Punters and economists alike are expecting around 0.7% growth in CPI for the latest quarterly reading (Dec QTR). The previous quarter saw similar growth of 0.7% while the 2nd quarter of 2016 saw 0.4%. The Aussie economy is certainly not out of the woods just yet, but if the trend continues with higher growth then of course talk of future rate hikes from the RBA will start to come into play. AUD/USD is managing to hold above 0.7500 while AUD/EUR and AUD/GBP are holding for the time being above 0.70 and 0.60 respectively. I suggest watching them closely if you have upcoming payments today.
DATA RELEASES TODAY:
AUD – CPI at 11.30am
EUR – German IFO Business Climate at 8.00pm
AUD EXCHANGE RATES:
AUD/USD – 0.7535
AUD/GBP – 0.6021
AUD/EUR – 0.7023
AUD/NZD – 1.0476
AUD/JPY – 86.269
***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 – 0431 278 632
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