The ECB left rates on hold at 0.00% once again overnight extending to nearly two years in which rates in the EU have been at 0.05% or lower. In addition to keeping rates on hold the ECB also refrained from boosting stimulus in a region which is only just beginning to recover from the fallout of the GFC nearly 7 years ago.
Locally yesterday we saw our trade balance shrink to its lowest level in about year as exports continue to shift away from traditional mining into other sectors like education production. However it wasn’t all good news with retail sales remaining sluggish and failing to meet expectations at just 0.2%.
Ahead tonight is the big one – namely U.S wages growth and Non-Farm payrolls, this is the data that gets economists and traders staying up all night to monitor currency movements and tonight won’t be any different with talk of further rate hikes from the U.S Federal Reserve on the table at their next meeting this month. Expectations are for a slight drop in the unemployment rate back to 4.9% and about 160K new jobs created. AUD/USD will move dramatically if the data deviates from estimates – consider booking payments today ahead of the data.
DATA RELEASES TODAY:
GBP – Services PMI at 6.30pm
USD – Wages Growth & Non-Farm Payrolls (Employment Figures) at 10.30pm
AUD EXCHANGE RATES:
AUD/USD – 0.7224
AUD/GBP – 0.5011
AUD/EUR – 0.6477
AUD/NZD – 1.0618
AUD/JPY – 78.624
***Above rates are indiciative wholesale rates and intended as a quide only***
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Senior Corporate FX Dealer
Contact Patrick for a quote on 0431 278 632