Stocks and commodities rallied Friday evening thanks to poor U.S jobs numbers which dampened expectations that the U.S Federal Reserve will return to a rate tightening cycle later this month. However there are still strong divisions with one camp suggesting that a rate hike is close to a sure thing if the Federal Reserve are to have any credibility while the other camp think the jobs numbers just weren’t strong enough to warrant a return to more tightening monetary policy. I guess we’ll just have to wait until September 22nd to find out.
AUD/USD gained over 1% following the mediocre U.S jobs numbers but has since retraced most of those gains.
Not much data is released today but we do have Glenn Stevens final interest rate decision tomorrow afternoon before he hands over the reins to Philip Lowe on the 18th of this month. The market is expecting no change to interest rates so minutes from the meeting will be what investors and traders focus on tomorrow afternoon.
DATA RELEASES TODAY:
JPY – BOJ Kuroda Speaks at 12.30pm
GBP – Services PMI at 6.30pm
AUD EXCHANGE RATES:
AUD/USD – 0.7568
AUD/GBP – 0.5692
AUD/EUR – 0.6781
AUD/NZD – 1.0375
AUD/JPY – 78.718
***Above rates are indicative wholesale rates and intended as a guide only***
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Senior Corporate FX Dealer