A survey of U.K purchasing managers turned positive last month with the reading moving back above 50 following two months below 50 (the point at which it is considered contractionary for the economy). Perhaps not surprisingly, we also saw the strongest gains in some time for the GBP, which rebounded against the AUD from a high of 0.5980 back to a more manageable 0.5600-5700.
RBA Governor Glenn Stevens chairs his final meeting today before he moves into retirement with the RBA board likely to keep rates steady at 1.50% following a 25 basis point cut back in July. Given the likely non-event of any change to interest rates then traders and investors are likely to read carefully the statement for perhaps a more unbiased opinion from Glenn Stevens on where the Aussie economy stands. Whether he’ll deliver anything or continue to simply jaw bone the market remains to be seen, but I’m looking for to the announcement at 2.30pm.
DATA RELEASES TODAY:
AUD – RBA Cash Rate at 2.30pm
USD – ISM Non-Manufacturing PMI at midnight
AUD EXCHANGE RATES:
AUD/USD – 0.7587
AUD/GBP – 0.5702
AUD/EUR – 0.6803
AUD/NZD – 1.0381
AUD/JPY – 78.454
***Above rates are indicative wholesale rates and intended as a guide only***
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Patrick Downes
Senior Corporate FX Dealer
Compass Markets
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