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.
The Aussie Dollar is little changed since last week. AUD/USD has been trading in a tight range between 0.7000 and 0.7150 on the wholesale market, while AUD/GBP continues to be the mover and shaker trading in a 200 point range between 0.5300 and 0.5500 on the top side. Brexit uncertainty remains the catalyst for any moves in AUD/GBP with a second referendum now just as likely as a hard Brexit – anyone’s guess how this one ends up.
Commodity prices have been led higher again by iron ore prices, which surged to their highest point since March 2017. Iron Ore on the Chinese Dalian Futures market hit nearly 140AUD a tonne yesterday signifying huge profit margins for most iron ore miners at current levels. Zinc and Copper prices have also been moving higher so with all three major base metals performing well along with robust Oil and Coal prices things are looking really good for the budget bottom line over the next few years.
There is still quite a bit of uncertainty about the Reserve Bank Of Australia’s likely next move with respect to interest rates, with some recent data and comments from the RBA giving the impression that perhaps interest rate cuts are not a given. Certainly the AUD holding above 0.7000 is also an indication of this. No data out today.
AUD EXCHANGE RATES:
AUD/USD – 0.7093
AUD/GBP – 0.5421
AUD/EUR – 0.6294
AUD/NZD – 1.0535
AUD/JPY – 79.128
All Ords (XAO) – 6,310
Gold – A$1,822/oz
Silver – A$21.42/oz
WTI – US$64.32/barrel
DATA RELEASES TODAY:
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