Aussie economic data released yesterday wasn’t at all fantastic but that certainly didn’t concern the RBA who mentioned in their RBA Statement that for the most part the Australian economy is transitioning nicely away from a mining-export led economy. Another interesting note from the meeting statement was that while they felt it the right move to keep rates on hold once again they also made a point to let the market know very clearly that they don’t particularly want the Aussie dollar to appreciate too much higher as current low levels are supporting the economy.
So what do we take from this? Well I think it’s pretty clear, should the Aussie dollar start to appreciate again, we could well see some intervention from the RBA, perhaps through a rate cut or perhaps through selling AUD. Of course this is speculation, but it probably suggests taking cover anywhere above 0.74 where possible is probably prudent.
DATA RELEASES TODAY:
EUR – ECB President Draghi Speaks at 6.00pm
USD – Non-Manufacturing PMI at midnight
USD – FOMC Meeting Minutes at 4.00am
AUD EXCHANGE RATES:
AUD/USD – 0.7462
AUD/GBP – 0.5729
AUD/EUR – 0.6739
AUD/NZD – 1.0429
AUD/JPY – 75.883
***Above rates are indiciative wholesale rates and intended as a quide only***
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Patrick Downes
Senior Corporate FX Dealer
Compass Markets
Contact Patrick for a quote on 0431 278 632
