Market Update – 30th July 2018 – AUD/USD Moves Higher Despite Stronger US GDP Numbers

U.S Advance GDP surprised to the upside on Friday evening, but instead of supporting the USD we saw a decline in the DXY otherwise known as the weighted average of the USD versus a basket of currencies including the Aussie. The reason for this decline is a bit of a conundrum given that strong GDP growth should in theory support the Fed’s current path of higher interest rates. Delving deeper into the numbers though and we get perhaps an answer and that is that it would appear that the way GDP was reported on Friday evening is a change to the way it’s been done in the past and it could have something to do with Trump playing a game of smoke and mirrors to show he’s growing the economy quicker than it actually is, but who knows….

Stocks in the U.S declined on Friday evening, while European stocks moved higher and commodities were mixed. No data out today but we will see local Building Approvals and Home Sales numbers tomorrow morning.

AUD EXCHANGE RATES:

AUD/USD – 0.7382

AUD/GBP – 0.5625

AUD/EUR – 0.6328

AUD/NZD – 1.0870

AUD/JPY – 81.977

USD/BTC – $8,158

OTHER MARKETS: 

All Ords (XAO) – 6,391

Gold – A$1,653/oz

Silver –  A$20.94/oz

WTI – US$68.67/barrel

DATA RELEASES TODAY:

USD – Advance GDP at 10.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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