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.
AUD Little Changed:
The AUD is little changed since yesterday but remains above 0.7100 vs. the Greenback and 0.6200 vs. the EURO, thanks to bullish iron ore prices and generally stronger commodities prices across the board. U.S stocks finished the overnight session mixed as the Dow Jones added 0.2%, while the Nasdaq and S&P closed lower; the tech heavy Nasdaq fell again as earnings misses escalated. The escalation in earnings misses for U.S corporate’s along with sluggish growth and a persistent Trump-led trade war with China may prompt the U.S Federal Reserve to change it’s tune on interest rates and stimulus when they meet again early tomorrow morning. As it stands U.S interest rates are at 2.5% having risen from 1.5% at the start of 2018.
Local CPI Numbers Out:
Local CPI otherwise known as the consumer price index is released this morning at 11.30am, with economists suggesting we’ll see around 0.4% growth in the latest quarter which would be around the quarterly trend for the past 3 years. 0.4% CPI annualised is around 1.6%, which by the RBA’s standards is lower than their target of 2-3%. Persistent low inflation or a lower than anticipated figure could be a dire outcome for the AUD and lead to projections of rate cuts from the RBA later this year, so definitely if you have payments to make today make these well before 11.30am.
AUD EXCHANGE RATES:
AUD/USD – 0.7119
AUD/GBP – 0.5438
AUD/EUR – 0.6222
AUD/NZD – 1.0438
AUD/JPY – 77.887
USD/BTC – $3,383
All Ords (XAO) – 5,939
Gold – A$1,834/oz
Silver – A$22.15/oz
WTI – US$53.25/barrel
DATA RELEASES TODAY:
AUD – Quarterly CPI at 11.30am
USD – Federal Funds Rate & FOMC Statement at 6.00am
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Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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