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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Senior Corporate FX Dealer