Market Update – 27th September 2018 – U.S Fed Lift Rates By 25 Basis Points, Markets Little Changed

Not a great deal to report this morning. The AUD and commodities prices remains around levels seen this time yesterday.

Overnight news flow was dedicated towards the U.S Federal Reserve Interest Rate decision with Jerome Powell and his team upping interest rates by 25 basis points as expected while reiterating that the slow and steady pace of interest rate hikes will continue until inflation becomes an issue – at this point in time it is not.

Forecasts suggest the U.S Fed will raise rates one more time in December, three more times in 2019 and once in 2020 and given the obvious telegraphing of these moves from the Fed, it’s not surprising that AUD/USD is down around 10 cents in the past 8 months. Any movement away from this steady pace of increases could be seen as USD bearish and therefore positive for AUD/USD.

More U.S data out tonight in Durable Goods Orders and Final GDP which are expected to come in slightly ahead and flat respectively compares to the previous reading.

AUD EXCHANGE RATES:

AUD/USD – 0.7237

AUD/GBP – 0.5480

AUD/EUR – 0.6148

AUD/NZD – 1.0859

AUD/JPY – 81.463

USD/BTC – $6,429

OTHER MARKETS: 

All Ords (XAO) – 6,307

Gold – A$1,645/oz

Silver –  A$19.74/oz

WTI – US$71.97/barrel

DATA RELEASES TODAY:

USD – Core Durable Goods Orders m/m at 10.30pm

USD – Final GDP q/q at 10.30pm