Market Update – 25th July 2018 – Commodities Prices Help AUD/USD Surge Back Into The 0.74’s

AUD/USD has pushed back above 0.7400 overnight thanks to surging metals prices and a respite from trade war headlines, but for the month of July AUD/USD remains pretty range bound between 0.7300 and 0.7500. All the other Aussie crosses are more or less higher again thanks to a more positive session overnight. U.S stocks moved higher by around half to 0.8%, while European stocks were even more buoyant with the DAX and French CAC the best performers up 1.12% and 1.04% respectively at the close. Bitcoin has continued it’s solid run, pushing past US$8,400 this morning and is now up just on 40% this month.

Aussie CPI or the Consumer Price Index is due out at 11.30am this morning with expectations of 0.5% growth in CPI in the last quarter – annualized that’s around 2% for the year and only marginally behind the RBA’s inflation target of somewhere between 2-3%. As such it’s hard to argue that the next move in interest rates will be anything but higher as such higher commodity prices and potentially higher interest rates should offset any U.S Dollar gains.

AUD EXCHANGE RATES:

AUD/USD – 0.7407

AUD/GBP – 0.5627

AUD/EUR – 0.6336

AUD/NZD – 1.0896

AUD/JPY – 82.420

USD/BTC – $8,385

OTHER MARKETS: 

All Ords (XAO) – 6,355

Gold – A$1,649/oz

Silver –  A$20.85/oz

WTI – US$68.47/barrel

DATA RELEASES TODAY:

CPI q/q at 11.30am

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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