Stocks and commodities outperformed other asset classes overnight with both European and U.S stocks posting solid gains while commodities got a bit of their mojo back after a number of days in the wilderness. To currency markets and we see the AUD steady against the Greenback and Euro, lower vs. the GBP after some very solid economic numbers out of the UK last night and up against the safe haven of the Japanese Yen which had been doing quite well the past few days thanks to a sharp increase in risk aversion.
Ahead today is Westpac Consumer Sentiment at 10.30am. This consumer sentiment figure is a gauge of consumers sentiment specifically relating to the economy and employment and is a good read on how the everyday Australian sees the economy right now. Over the past 6 months we've had continuing negative sentiment barring July where we saw a small improvement in consumer sentiment. Reading a bit further into the data it suggests that perhaps the everyday Aussie is not overly optimistic about the economy or overly excited about their prospects going forward. This could be as a result of having to fork out more for their mortgages or the fact that wage growth has been very much stagnant for quite some time.
AUD EXCHANGE RATES:
AUD/USD – 0.8022
AUD/GBP – 0.6035
AUD/EUR – 0.6702
AUD/NZD – 1.1002
AUD/JPY – 88.409
DATA RELEASES TODAY:
AUD - Westpac Consumer Sentiment at 10.30am
GBP - Average Earnings at 6.30pm
USD - PPI at 10.30pm
***Above rates are indicative wholesale rates and intended as a guide only***
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