I talked about 'risk-off' being the flavour of the month and it appears more of the same overnight with market jitters intensifying as a result of a potential conflict between Trump and Kim Jong Un. The Aussie dollar fell along with equities whilst safe havens like Gold and the Japanese Yen bounced higher. U.S equities were the worst performers with the Nasdaq down over 2% while the S&P and Dow fared a little better but still posted considerable losses.
RBA Governor Lowe speaks at 9.30am this morning, while U.S CPI is released this evening at 10.30pm. The market is expecting to see inflation in the vicinity of 0.2% for the latest monthly reading, so anything less than that could see further risk aversion.
As a side note: I'm heading to China for two weeks for business/holiday and hence no morning report from me until I return around the 30th. It is however business as usual and I'll have my phone on me with access to email and calls. However if you'd like to do me a favour please email deal requests to firstname.lastname@example.org as opposed to calling and I'll get back to you in my usual efficient manner. Thanks in advance and enjoy the last few weeks of Winter.
AUD EXCHANGE RATES:
AUD/USD – 0.7862
AUD/GBP – 0.6059
AUD/EUR – 0.6681
AUD/NZD – 1.0820
AUD/JPY – 85.823
DATA RELEASES TODAY:
AUD - RBA Gov. Lowe Speaks at 9.30am
USD – CPI at 10.30pm
***Above rates are indicative wholesale rates and intended as a guide only***
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Senior Corporate FX Dealer
Phone Patrick - 0431 278 632