Market Update – 31st August 2017 – AUD Very Much Range Bound In August, Same In Sept?

You need only to take a glimpse at a chart of AUD/USD to realise the past month has been quiet by almost all measures. Since August started we’ve been very much range bound with AUD/USD drifting between around 0.7800 and 0.8000 whilst spending the bulk of time in the 0.7900’s or thereabouts. Volatility however has picked up in other markets such as equities but the Aussie has remained quite subdued. Whether this continues into next month is impossible to tell, but if we look back over the past year low volatility months have typically been followed by substantially higher volatility with Feb and May pretty good examples – rarely have we seen low volatility continue longer than a month. With that said, it’s always good to expect the unexpected particularly if you have tight costings on your imports or exports. To chat about ways to hedge against volatility in the Aussie dollar please do reach out and I can run you through how we can help.

Ahead today is some local Aussie date with Private Cap. Expenditure and Private Sector Credit due around 11.30am. Other than that it’s pretty quiet with respect to data announcements.

AUD EXCHANGE RATES:

AUD/USD – 0.7905

AUD/GBP – 0.6115

AUD/EUR – 0.6647

AUD/NZD – 1.0969

AUD/JPY – 87.189

DATA RELEASES TODAY:

AUD – Private Cap. Expenditure at 11.30am

AUD – Private Sector Credit at 11.30am