Please note that the commentary below is factual information provided to a group of readers as a web blog, and where an opinion is expressed by the author, it is GENERAL ADVICE only.
AUD Savaged By RBA Comments:
The AUD fell yesterday as RBA Governor Lowe in a speech at the National Press Club in Sydney suggested slow growth & inflation could force the RBA to lower interest rates if economic data didn’t improve as they expect. Essentially they began the process of telegraphing to the market that the next move may be a rate cut as opposed to a rate hike. This speech followed the RBA statement on Tuesday which removed some key wording about the next move likely to be a rate rise and was obviously quite a shock to the market; as a result the AUD dropped almost immediately by over 1% yesterday across the board. This morning we’re down further, with AUD/USD the worst performer back below 0.7100.
Equities Set To Open Higher:
Aussie equities performed well yesterday while overnight U.S & European equities declined but only marginally. Our local market is expected to open around 0.17% higher this morning. Metals prices after a great run through January have started to sell off a little in the early part of February, but some forecasts have copper, zinc and iron far higher by year end which would certainly be bullish for our major miners like BHP, RIO, FMG and even the refurbished New Century Zinc mine which is reprocessing tailings from the old Century Zinc mine.
AUD EXCHANGE RATES:
AUD/USD – 0.7088
AUD/GBP – 0.5471
AUD/EUR – 0.6232
AUD/NZD – 1.0393
AUD/JPY – 78.001
All Ords (XAO) – 6,091
Gold – A$1,835/oz
Silver – A$22.02/oz
WTI – US$54.17/barrel
DATA RELEASES TODAY:
China – Bank Holidays all week (no payments processed)
USD – Fed Chair Powell Speaks Speaks at 11.00am
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Senior Corporate FX Dealer
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