Market Update – 29th January 2018 – AUD/USD Starts Week Above 0.8100

AUD/USD has extended gains to nearly two months straight with the currency pair starting the week above 0.8100 on the wholesale market for the first time since January 2015. The only message I have for importers this morning is take advantage of the Aussie while its up as typically gains like this are followed by profit taking on the part of traders. When/If this occurs we could see some pullbacks before either a renewed push higher or a return to AUD weakness vs. the Greenback. However, a lot does depend on the words that come out of Donald Trump’s mouth and he has a knack of moving the USD based on his at times impulsive Tweets on global macro issues, the USD and the U.S economy.

U.S and European stocks surged higher on the final trading day of the week which bodes well for local equities that look set to open higher to the tune of about 0.4%. The French CAC led the way in Europe up nearly 0.9%, while in the U.S the NASDAQ added a whopping 1.3% taking January gains to nearly 9% – the NASDAQ is also the best performer over the past 12 months having added close to 33%. To put that in comparison the ASX200 added only 6.67% over the past 12 months…….

No data is released today, however we do have NAB Business Confidence due tomorrow, followed by local CPI and Private Sector Credit on Wednesday. It’s then off to the U.S for the next interest rate decision from the U.S Federal Reserve early Thursday morning with all indications that rates will be held steady at 1.5%. U.S Non-Farm payrolls (employment numbers) are then due Friday evening.

AUD EXCHANGE RATES:

AUD/USD – 0.8107

AUD/GBP – 0.5720

AUD/EUR – 0.6521

AUD/NZD – 1.1013

AUD/JPY – 88.064

USD/BTC – $11,600

COMMODITIES: 

Gold – A$1665/oz

Silver –  A$21.47/oz

WTI – US$66.16/barrel

DATA RELEASES TODAY:

No data releases or economic announcements

***Above rates are indicative wholesale rates and intended as a guide only***

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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