Compass Global Markets' Blog

Market Update - 22nd September 2016 - AUD/USD Rebounds As Fed Continues Wait and See Approach To Rates

Posted by Patrick Downes on September 22, 2016 at 8:27 AM

Stocks, commodities and the Aussie dollar rebounded this morning thanks to the U.S Federal Reserve, who decided at 4.00am AEST to again leave rates unchanged at 0.5%. The news was sort of expected, but a bit of risk aversion had been priced into AUD/USD leading up to the announcement with the obvious risk being a sharp move to the downside if the Fed lifted rates by 25 basis points or more. Fortunately for importers this didn't happen and AUD/USD is now a solid 1% higher than this time yesterday.

Obviously it presents another great opportunity for importers looking to hedge exposures so please do get in touch if you'd like some Forward Contract quotes. 

Ahead today is perhaps a maiden speech from new RBA Gov. Lowe who is due to testify before the House of Representatives in Canberra this morning. No doubt he'll be grilled on the economy and his monetary policy plans.

DATA RELEASES TODAY:

AUD - RBA Gov. Lowe Speaks at 10.00am

EUR - ECB President Draghi Speaks at 11.00pm

AUD EXCHANGE RATES:

AUD/USD – 0.7630

AUD/GBP – 0.5852

AUD/EUR – 0.6817

AUD/NZD – 1.0400

AUD/JPY – 76.613

***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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