Market Update – 3rd October 2017 – RBA Cash Rate Decision At 2pm Could See AUD Move From 0.78’s

Well you’ve probably all heard the news that around 58 people have been killed in yet another mass-shooting in the U.S…and while it is exceptionally sad, you just wonder when/if/ever U.S politicians will do something about the ridiculous ease in obtaining a high powered rifle. I’m not holding my breath. Despite the horrors in Las Vegas U.S equities led by gun manufacturers finished higher while European stocks also managed to post gains.

The Aussie dollar hasn’t done a great deal overnight, however a raft of local data today should see some increased volatility, particularly given a number of states are coming back from a long weekend. Data kicks off at 11.00am with New Home Sales figures and for those of you watching the housing market you may want to take notice of this figure. Following that is more pertinent economic data in Building Approvals and ANZ Job Ads with the market expecting to see a slight improvement in the number of Building Approvals.

The all important RBA cash rate announcement caps off a busy day at 2.30pm, with the market expecting to see no change to rates from 1.5%, however as is typically the case when no rate change is expected, all eyes will be on the accompanying statement for an indication on when we can expect the next rate hike. I say rate hike as the likely next move will be a move higher as opposed to lower, given the high Aussie dollar and generally rising inflation around the world.

AUD EXCHANGE RATES:

AUD/USD – 0.7827

AUD/GBP – 0.5895

AUD/EUR – 0.6670

AUD/NZD – 1.0881

AUD/JPY – 88.243

COMMODITIES: 

Gold – A$1623/oz

Silver –  A$21.19/oz

WTI – US$50.69/barrel

DATA RELEASES TODAY:

AUD – HIA New Home Sales at 11.00am

AUD – Building Approvals & ANZ Job Ads at 11.30am

AUD – Cash Rate Decision & Accompanying Statement at 2.30pm

GBP – Construction PMI at 7.30pm