Iron ore prices remained steady overnight near three month highs around US$62 a tonne, while European equities had a solid session with the DAX gaining as much as 2.50% and the Euro Stoxx 50 up just over 1.5%. The same wasn't seen in the U.S were equities finished the session pretty flat during lackluster trade.
The Aussie dollar continued to make gains against the Greenback but failed again to push past 0.7700 which has become a very strong level of resistance for the currency pair. Since May AUD/USD has traded as high as 0.7650 on perhaps 6 or so occasions only to fail, however it does appears this time could be different with strong bullish momentum supporting the Aussie dollar and a seemingly endless appetite for traders to go long (buy) the Aussie dollar perhaps in search of yield or higher interest rates than the zero or negative rates offered in most developed nations right now.
We have a final speech from RBA Governor Glenn Stevens at 1.05pm this afternoon and tomorrow morning at 7.00am the RBNZ meet to decide on interest rates which currently sit at 2.25%. Expectations are for a cut to 2.00%.
The speech from Glenn Stevens at 1.05pm will be his last as RBA Governor as he steps down from the role next month. Philip Lowe takes over the reins and will be charged with extricating the Australian economy from the precipice of a recession and stubbornly low growth. The final speech from Glenn Stevens will probably be watched pretty closely as it'll be an opportunity for him to "tell it as it is" so to speak without any bias.
DATA RELEASES TODAY:
AUD – RBA Gov Stevens Final Speech at 1.05pm
NZD - RBNZ Interest Rate Decision at 7.00am (tomorrow morning)
AUD EXCHANGE RATES:
AUD/USD – 0.7668
AUD/GBP – 0.5894
AUD/EUR – 0.6896
AUD/NZD – 1.0699
AUD/JPY – 78.150
***Above rates are indiciative wholesale rates and intended as a guide only***
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Senior Corporate FX Dealer
Contact Patrick for a quote on 0431 278 632