Compass Global Markets' Blog

Market Update - 21st September 2016 - BOJ, RBNZ and U.S Fed All With Interest Rate Decisions Over Next 24Hours

Posted by Patrick Downes on September 21, 2016 at 9:19 AM

Three interest rate decisions over the next 24 hours could shape the Aussie's movement over the next month or so, with Japan, the U.S and New Zealand all deciding on where if at all the next interest rate move will be. Expectations are that Japan will move rates further negative today, which could provide a boost in AUD/JPY, while in the U.S early tomorrow morning bets are down to a 20% likelihood that we'll see a rate hike from Janet Yellen's Federal Reserve. RBNZ are not expected to move.

The Aussie dollar has continued on it's little run higher against the majors ahead of the Fed interest rate decision and it sort of feels like we could expect more of the same today and tomorrow. But, feeling something is different to knowing something and the risk remains that Janet Yellen could surprise the market with a rate hike. If she does, its fair to assume that AUD/USD will drop like a rock, potentially by up to two cents.

Stocks were flat overnight however commodities led by the energy sector moved higher - iron ore remains above government forecasts at US$55 a tonne.

DATA RELEASES TODAY:

JPY - BOJ Interest Rate Decision

USD – Fed Reserve Interest Rate Decision at 4.00am

NZD – RBNZ Interest Rate Decision at 7.00am (tomorrow morning)

AUD EXCHANGE RATES:

AUD/USD – 0.7557

AUD/GBP – 0.5817

AUD/EUR – 0.6774

AUD/NZD – 1.0327

AUD/JPY – 76.856

***Above rates are indicative wholesale rates and intended as a guide only***

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Patrick Downes

Senior Corporate FX Dealer

Compass Markets

Phone Patrick - +61 03 9099 8459

  Email Patrick: patrick@compassmarkets.com

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