The Aussie dollar is up for a second day thanks in part to stable iron ore prices but also in response to poorer than expected U.K, European and U.S economic data released overnight. U.K and a swathe of European services PMI was released in the late afternoon showing a slowing in the level of optimism amongst purchasing managers across the region while in the U.S ISM non-manufacturing data also failed to meet expectations coming in at 56.9 vs. the expected 57.1. Overall the Aussie dollar is roughly half a percent higher since this time yesterday.
Ahead today is the RBA Cash Rate and accompanying rate statement and given the slowing economy some economists are tipping a change in rhetoric from the RBA and perhaps a gradual introduction of terms suggesting that a rate cut could be the next port of call. However, the RBA will be wary of further fuelling a heated housing market which has only just started to cool. Expectations are for no cut today, but again keep an eye on the rate statement for clues as to the RBA’s next move.
DATA RELEASES TODAY:
AUD – Cash Rate Decision & Rate Statement at 2.30pm
AUD EXCHANGE RATES:
AUD/USD – 0.7456
AUD/GBP – 0.5770
AUD/EUR – 0.6618
AUD/NZD – 1.0455
AUD/JPY – 82.407
***Above rates are indicative wholesale rates and intended as a guide only***
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Patrick Downes
Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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