The Aussie dollar finished the week in good form adding around 2% vs. the Greenback and holding stable vs. the Euro and GBP. The turnaround in fortunes for the Aussie dollar was due to stronger than expected trade balance numbers on the back of surging exports while producer prices (which were released on Friday) leapt 0.8% in the latest quarter suggesting producers are more comfortable charging higher prices for their goods. All this in conjunction with a more optimistic view of Trump being able to do a trade deal with China caused market sentiment to improve quite dramatically.
Not a great deal of economic data is out today however we do have the all important RBA cash rate decision tomorrow at 2.30pm. Whilst the market is expecting no change to interest rates which have been held steady at 1.5% since August 2016 we will be watching closely the RBA’s accompanying rate statement for commentary on the economy, the housing sector and global trade. Also, we’ll be looking for hints as to what the RBA’s next rate move might be, however they will likely drip feed their hints over the course of months in order to not shock the market and see a sudden surge in the AUD – which at its current low level is supporting our export economy of mining, education and tourism.
AUD EXCHANGE RATES:
AUD/USD – 0.7158
AUD/GBP – 0.5492
AUD/EUR – 0.6281
AUD/NZD – 1.0800
AUD/JPY – 81.030
USD/BTC – $6,389
OTHER MARKETS:
All Ords (XAO) – 5,935
Gold – A$1,713/oz
Silver – A$20.50/oz
WTI – US$62.89/barrel
DATA RELEASES TODAY:
AUD – MI Inflation Gauge m/m at 11.00am
GBP – Services PMI at 8.30pm
USD – ISM Non-Manufacturing at 2.00am
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Patrick Downes
Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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