Market Update – 2nd June 2016 – Aussie Bounces On Strong GDP Numbers & Chinese Manufacturing PMI

Most economic data released over the past 24 hours was pretty positive and relatively upbeat, not least Aussie GDP which nearly doubled estimates of 0.6% to come in at a healthy 1.1%. The boost in quarterly GDP along with a revision higher for the previous quarter saw GDP through the year jump to 3.1% – well above previous estimates of growth and supported by a shift towards production. Overall the impact of the more positive GDP readings saw AUD/USD rally around 1% to a high of 0.7299 yesterday morning.

Other data releases included Chinese, US and UK manufacturing PMI figures which all showed signs of improvement. The upbeat data however didn’t really boost equity markets or commodities which either were flat (in the case of U.S equities) or fell (as was the case for European equities).

We have another busy day today for economic data with Aussie retail sales and trade balance figures due at 11.30am, followed by the European Central Bank’s latest decision on interest rates and preliminary Non-Farm employment figures from ADP. Where to for the Aussie from here is anyone’s guess, stay tuned!

DATA RELEASES TODAY:

AUD – Retail Sales & Trade Balance at 11.30am

GBP – Construction PMI at 6.30pm

EUR – ECB Minimum Bid Rate at 9.45pm

USD – Preliminary Non-Farms from ADP at 10.15pm

AUD EXCHANGE RATES:

AUD/USD – 0.7249

AUD/GBP – 0.5024

AUD/EUR – 0.6480

AUD/NZD – 1.0631

AUD/JPY – 79.424

***Above rates are indiciative wholesale rates only, and change constantly***

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Patrick Downes

Senior Corporate FX Dealer

 Compass Markets

Contact Patrick for a quote on 0431 278 632

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