A perfect storm of surging commodity prices led by iron ore and a more hawkish than expected Reserve Bank of Australia yesterday has seen AUD surge to its highest level in over two years. AUD/USD has now made gains of around four and a half percent since last Monday with the high being hit overnight at 0.7943. We've since succumbed to a little profit taking but it's hard to see an end in sight to this current run and particularly given the recent poor economic data out of the U.S. The other AUD crosses are also looking very attractive at current levels with most piling on gains over the past fortnight.
Whilst I understand clients wish to hold in anticipation of higher levels it would certainly be prudent to book a little at current prices hence taking advantage of these highs. The AUD is well known as the currency that goes up by the stairs and down by the elevator.
Ahead today is further U.S economic data in building permits with an estimated 1.2m new buildings slated for development.
AUD EXCHANGE RATES:
AUD/USD – 0.7912
AUD/GBP – 0.6068
AUD/EUR – 0.66848
AUD/NZD – 1.0772
AUD/JPY – 88.688
DATA RELEASES TODAY:
USD - Building Permits at 10.30pm
***Above rates are indicative wholesale rates and intended as a guide only***
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