Please note that the commentary below is factual information provided to a group of readers as a web blog, and where an opinion is expressed by the author, it is GENERAL ADVICE only.
Stocks Mostly Gain:
The AUD has edged higher since Friday morning with the best performer being AUD/EUR which is up around 30 points or half a percent. AUD/USD made most of it’s gains on Friday afternoon so is little changed since the Saturday morning close (the normal time FX markets close for trade before reopening on the Monday morning).
We had no economic data out yesterday and that void continues today and tonight, but things ratchet up again with the release of Australian quarterly CPI figures at 11.30am tomorrow morning. Expectations are for further flat CPI growth in the range of 0.5%, suggesting CPI is still moving rather sluggishly at 2% per annum or at the very bottom of the RBA’s range. A particularly poor reading tomorrow and we will likely see the AUD fall on expectations of further rate cuts from the RBA down the track.
Overnight stocks gained right across the board which should mean a good day again for local equities. Futures are suggesting a gain of 0.3% on the open. RBA Gov Lowe speaks tonight at 5.45pm which could impact the AUD’s movements.
AUD EXCHANGE RATES:
AUD/USD – 0.6803
AUD/GBP – 0.5281
AUD/EUR – 0.6130
AUD/NZD – 1.0737
AUD/JPY – 74.188
All Ords (XAO) – 6,842
Gold – A$2,182/oz
Silver – A$26.11/oz
WTI – US$55.75 barrel
DATA RELEASES TODAY:
AUD – RBA Gov Lowe Speaks at 5.45pm
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