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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