Signs of continued reflation across the U.S and U.K overnight with strong U.S preliminary jobs numbers which precede the official numbers Friday night. ADP non-farm employment came in at 263K well and truly eclipsing the 184K estimate of economists. The strong jobs number offset the poorer than anticipated ISM reading and resulted in a further USD rally – AUD/USD is now off over 2 cents since March 22.
U.K services PMI – a leading indicator of economic health surged ahead to 55 supporting the Pound and perhaps sending a message that the U.K is building momentum and rather quickly. Having said that I’m fairly confident that the Bank Of England will be quite cautious before raising interest rates too soon.
Ahead tomorrow morning is a speech from ECB President Draghi at 6.00am (tomorrow morning).
DATA RELEASES TODAY:
EUR – ECB President Draghi Speaks at 6.00am
AUD EXCHANGE RATES:
AUD/USD – 0.7519
AUD/GBP – 0.6011
AUD/EUR – 0.7042
AUD/NZD – 1.0800
AUD/JPY – 83.110
***Above rates are indicative wholesale rates and intended as a guide only***
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Patrick Downes
Senior Corporate FX Dealer
Compass Markets
Phone Patrick – 0431 278 632
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