Market Update – 6th September 2017 – Risk Aversion Takes Front Seat, But AUD Claws Higher

Risk aversion was on the cards last night with equities and commodities all taking a dive, however the Aussie dollar which would typically be grouped as a risk asset didn’t fall, but rather made gains vs. the Greenback and the Euro. AUD/JPY did fall as the safe haven of the Japanese Yen was bid higher.

In news yesterday we saw the Aussie cash rate held steady at 1.5% as “conditions in the global economy are continuing to improve. Labour markets have tightened further and above-trend growth is expected in a number of advanced economies”. Essentially not much different to the rhetoric coming out of the RBA over the past year.

Ahead today is Aussie GDP figures and tonight U.S non-manufacturing data. The market is expecting to see GDP at around 0.8% for the latest quarterly reading.

AUD EXCHANGE RATES:

AUD/USD – 0.7999

AUD/GBP – 0.6133

AUD/EUR – 0.6711

AUD/NZD – 1.1042

AUD/JPY – 86.937

DATA RELEASES TODAY:

AUD – GDP at 11.30am

USD – ISM Non-Manufacturing PMI at midnight

***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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