Stocks were flat or fell over night, while the Aussie dollar succumbed to selling pressure amid weaker commodities prices and a strengthening in safe haven currencies including the USD and JPY. Whats the reason for all this renewed risk aversion and flight to safety? North Korea once again. New sanctions from the U.S Government which go further than ever before targeting individuals and businesses who deal with North Korea have certainly ratcheted up the conflict while comments from Trump and his Generals that they are ready to use ‘devastating force’ on North Korea certainly haven’t resolved any issues.
Other news and data is certainly being drowned out by the continued back and forth so I guess we’ll just have to wait and see how all this plays out. Should importers wish to take some risk off the table you can do so by booking in a Forward Contract which means you’re buying currency today for a later date, but you settle the Forward as and when you use the booked currency. So great with respect to your cash flow.
AUD EXCHANGE RATES:
AUD/USD – 0.7883
AUD/GBP – 0.5857
AUD/EUR – 0.6685
AUD/NZD – 1.0932
AUD/JPY – 88.506
DATA RELEASES TODAY:
USD – Core Durable Goods Orders at 10.30pm
***Above rates are indicative wholesale rates and intended as a guide only***
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Senior Corporate FX Dealer
Phone Patrick – 0431 278 632