Worse than anticipated US core durable goods orders and pending home sales have done little to weaken the U.S Dollar overnight with the US Dollar Index actually closing the session at the same level as its open – something you rarely see in financial markets but perhaps suggesting volatility is due, we just don’t know when it’ll return to markets. The lack of a move in the US Dollar Index overnight and this month coincides with very little movement in the Aussie and likewise global equities which have rallied at most 3%, but many indices are flat for the month of Feb.
President Trump’s State of the Union Speech will be held around 1pm local time tomorrow and is shaping as a catalyst for volatility with some experts predicting it’ll make or break this recent surge in U.S equities. If he fails to cement promises of infrastructure and so forth we could well see a sharp decline in U.S equities as a result – if he continues with his infrastructure rhetoric then you’d have to assume it’ll be business as usual. All I can say is buckle up.
DATA RELEASES TODAY:
USD – US Prelim GDP at 12.30am
USD – CB Consumer Confidence at 2.00am
AUD EXCHANGE RATES:
AUD/USD – 0.7638
AUD/GBP – 0.6119
AUD/EUR – 0.7205
AUD/NZD – 1.0661
AUD/JPY – 86.451
***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