To those of you who have been contact with me over the past week or two hoping for higher rates, today potentially provides that opportunity with AUD up by around 1% vs the Greenback and similar amounts vs. the EURO and GBP since Monday. The reason being that despite the U.S raising interest rates to 1.5% (the same as here in Australia) they suggested that that might just be it for a little while given flatter economic numbers that what we've seen in the earlier part of the year. I personally still think it's inevitable that we'll see a lower AUD, not because I'm sadistic but rather the U.S economy continues to grow at a much faster pace than Australia, and in all likelihood we might see no rate change here from 1.5%, but potentially between 2-4 0.25% hikes in the U.S next year. So with that said, take advantage of the Aussie when you can and be prudent with respect to your hedging and buying strategy.
Local employment data is due out today at 11.30am followed by Chinese industrial production figures at 1.00pm. Later this evening the Bank of England decide on their own interest rates, so we could see a bit of volatility for AUD/GBP, which remains near 1 year lows.
AUD EXCHANGE RATES:
AUD/USD – 0.7635
AUD/GBP – 0.5690
AUD/EUR – 0.6465
AUD/NZD – 1.0871
AUD/JPY – 85.915
Gold – A$1645/oz
Silver – A$21.05/oz
WTI – US$56.71/barrel
DATA RELEASES TODAY:
AUD - Employment Numbers at 11.30am
CNY - Chinese Industrial Production at 1.00pm
GBP - Official Bank Rate Vote at 11.00pm
***Above rates are indicative wholesale rates and intended as a guide only***
Sign up for a Compass account today and access some of the most competitive rates in the business and arguably the best service.
Senior Corporate FX Dealer
Phone Patrick - 0431 278 632