Stock markets and commodities moved higher overnight as risk appetite increased and markets ceased worrying about a potential conflict between N.Korea and the rest of the world. Asian markets started the momentum yesterday making solid gains and creating the impetus for European and U.S markets to move higher led by the FTSE up 0.5%. Commodities led by the metals also made strong gains with Zinc, Nickel and Iron Ore all snapping a week of losses.
The AUD is hovering just under 0.8000 vs. the Greenback, mid 0.66's vs. the Euro and just on 0.5900 vs. the Pound. We're expecting to see more local AUD sensitive economic data today in monetary policy minutes and the House Price Index around 11.30am. Monetary policy minutes will of course be watched closely for an indication on the next move from the RBA...but it's looking more likely the next move will be a rate hike as opposed to a rate cut. The latest House Price Index (HPI) should also give us a feel for if the stumbling housing sector is indeed an ingrained trend or just taking a breather before kicking higher...but I suggest its probably the former.
AUD EXCHANGE RATES:
AUD/USD – 0.7959
AUD/GBP – 0.5895
AUD/EUR – 0.6658
AUD/NZD – 1.0963
AUD/JPY – 88.791
DATA RELEASES TODAY:
AUD - Monetary Policy Meeting Minutes at 11.30am
AUD - Home Prices Index at 11.30am
USD - Building Permits at 10.30pm
***Above rates are indicative wholesale rates and intended as a guide only***
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