Oil prices are the big mover overnight with WTI rising to over US$72 a barrel which is the highest level since early July. Higher oil prices are typically seen as deflationary or constraining growth as it’s a large input/expense for many businesses as such it’s not unusual to see Donald Trump trying to talk down the oil price and persuade the Arab nations and Opec to think about increasing supply. Interestingly higher oil prices are in some ways a Trump made problem as he’s all but switched off oil production in one of the world biggest oil producers Iran with new sanctions.
The AUD has maintained ground picked up last week with AUD/USD holding above 0.7200, while AUD/GBP is back in the 0.5500’s after a dip below for the better part of this month. 0.5400 might be a base for AUD/GBP, while AUD/USD is still constrained by trend line resistance around current levels. Please see the chart below for details:
No economic data out today however we do see US CB Consumer Confidence figures around midnight tonight. Equities markets in the U.S and Europe performed poorly overnight, however commodities prices have continued to rebound which is supporting the Aussie Dollar.
AUD EXCHANGE RATES:
AUD/USD – 0.7231
AUD/GBP – 0.5500
AUD/EUR – 0.6141
AUD/NZD – 1.0899
AUD/JPY – 81.471
USD/BTC – $6,593
OTHER MARKETS:
All Ords (XAO) – 6,299
Gold – A$1,653/oz
Silver – A$19.66/oz
WTI – US$72.18/barrel
DATA RELEASES TODAY:
USD – CB Consumer Confidence at midnight
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Patrick Downes
Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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