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.
A double whammy of better than anticipated local CPI numbers and a more patient U.S Federal Reserve has helped the AUD surge higher against all the majors. AUD/USD moved back above 0.7200 and earlier this morning reached it’s highest level since early December. The AUD also performed quite strongly vs. the Japanese Yen as risk aversion dissipated – both JPY and USD are both typically seen as risk aversion metrics rising when sentiment is poor and falling when sentiment is strong. Overall the past 24 hours have been good for the Aussie Dollar and equities for that matter with the Nasdaq moving 2.2% higher while the Dow surged a comfortable 1.77%. Our local index should open around 0.6% higher but may do even better through the session.
More Local Data:
Import prices and Private Sector Credit are both due out this morning followed by Chinese manufacturing PMI around midday. Import prices will likely rise given the fall in the AUD, while private sector credit is expected to remain rather sluggish around 0.3% growth for the month. Commodities prices have been performing well lately, however we did see a slight pullback overnight in the price of iron ore following a pretty bullish run on the back of this second tragic Vale tailings dam failure.
AUD EXCHANGE RATES:
AUD/USD – 0.7216
AUD/GBP – 0.5503
AUD/EUR – 0.6281
AUD/NZD – 1.0475
AUD/JPY – 78.701
USD/BTC – $3,413
All Ords (XAO) – 5,951
Gold – A$1,820/oz
Silver – A$22.16/oz
WTI – US$54.29/barrel
DATA RELEASES TODAY:
AUD – Import Prices & Private Sector Credit at 11.30am
CNY – Manufacturing PMI at Midday
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