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
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Patrick Downes
Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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