Equity markets and banks were closed in most Australian states yesterday in observance of the Queens Birthday holiday. The holiday is typically a day in which Collingwood beat Melbourne in the regular Queens Birthday fixture, but that tradition came to a crashing halt with the ‘Pies’ well beaten by the impressive ‘Demons’ for the first time since 2007.
Back to markets and we see the Aussie dollar down around 1% vs. the Greenback and Yen having fallen from highs reached Thursday morning. AUD/USD is down the most but remains just above 0.7380, while AUD/JPY is back in the 78’s. Chinese data released yesterday shows industrial production may have bottomed out with the figure barely moving since about April 2015 when the industrial production hit 5.6%, the figure currently stands at 6%.
Ahead this evening is U.K CPI but with Janet Yellen’s Fed Reserve meeting Thursday morning and a rate hike still a faint probability all eyes will be on the very crucial U.S Retail Sales figures released at about 10.30pm. Markets are expecting a figure of just 0.4%, but of course a much better reading could see some USD strength.
DATA RELEASES TODAY:
GBP – CPI at 6.30pm
USD – Retail Sales at 10.30pm
AUD EXCHANGE RATES:
AUD/USD – 0.7385
AUD/GBP – 0.5197
AUD/EUR – 0.6540
AUD/NZD – 1.0469
AUD/JPY – 78.293
***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