Global equities pushed higher again Friday evening with Europe leading the way up as much as 0.8%, while in the U.S stocks pushed marginally higher with the S&P 500 the best performer up a modest 0.16%.
U.S GDP was the big data release on Friday evening and again showed the U.S economy was simply "muddling through" with the latest quarter showing only a 1.2% advance in GDP, well below economists expectations of closer to 2.6%. The Greenback fell across the board following the GDP data as traders paired bets that we'll see a rate hike from the Federal Reserve before 2017, while AUD/USD rallied towards 0.7600 on the mediocre GDP figures.
As importers however we should certainly not get complacent with the Aussie dollar and 0.7600 has proven to be a key level of resistance. With building approvals, trade balance figures and a likely 25 basis point cut from the RBA tomorrow afternoon it may be worth while taking a bit of risk off the table and covering any USD exposures you may have. Call me if you'd like to discuss - 0431 278 632
DATA RELEASES TODAY:
CNY - Manufacutring PMI at 11.00am
GBP - Manufacturing PMI at 6.30pm
USD - ISM Manufacturing PMI at midnight
AUD EXCHANGE RATES:
AUD/USD – 0.7596
AUD/GBP – 0.5745
AUD/EUR – 0.6799
AUD/NZD – 1.0557
AUD/JPY – 77.765
***Above rates are indiciative wholesale rates and intended as a guide only***
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Senior Corporate FX Dealer
Contact Patrick for a quote on 0431 278 632