Market Update – 26th August 2016 – Aussie Dollar Little Changed Through Week, US Fed Chair Yellen To Speak @ Jackson Hole

Stocks and commodities went it different directions overnight with equities marginally lower, while commodities edged higher. The exceptions however were the German DAX which fell nearly a percent and iron ore prices which after a stellar run have moderated or stalled just above US$60 a tonne.

It’s been a week lacking any important economic data and so the Aussie dollar in the scheme of things hasnt moved a great deal. AUD/USD which opened Monday at 0.7603 is now trading just 20 points higher. AUD/GBP is down 1% since Monday while AUD/EUR is up around half a percent.

Tonight we have a speech from Fed Chairwomen Janet Yellen so we’ll have to watch markets closely for any hints of a return to more tightening monetary policy. Some suggest there might be some hints in the speech about the next interest rate hike but we’ll have to wait and see.  Have a great weekend.

DATA RELEASES TODAY:

GBP – Second Estimate GDP at 6.30pm

USD – Prelim GDP at 10.30pm

USD – Fed Chair Yellen Speaks at midnight

AUD EXCHANGE RATES:

AUD/USD – 0.7626

AUD/GBP – 0.5776

AUD/EUR – 0.6754

AUD/NZD – 1.0440

AUD/JPY – 76.645

***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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