The most interesting news to come out overnight was the decision by the Organization of Petroleum Exporting Countries (otherwise known OPEC) to cut production for the first time in eight years. Something which had in the last decade been a common practice and was mostly forgotten about or merely talked about since is finally back on the table. The move is obviously great for OPEC members and the oil price which rallied more than 6% on the news. The Aussie dollar also rallied thanks to a bolstering of risk appetite which saw both commodities and equities move higher in unison.
Ahead this evening is U.S. Final GDP which is tipped to come in at a measly 1.1% annualized figure, which is as most of you'll be aware barely above 0% or contraction. Janet Yellen and the U.S Fed will need a strong number here to have any confidence in boosting interest rates before 2017. A poor figure or lower than last quarter will more than likely shut the door completely to any further rate hikes in 2017.
Tomorrow is a public holiday in VIC for the Grand Final Parade, but I'll still be on deck to book deals if required. Monday is a public holiday in NSW, QLD and SA but not Melbourne- so if you guys are working on your day off, you know who to call for a deal. Have a good weekend!
DATA RELEASES TODAY:
USD – Final GDP at 10.30pm
USD - Fed Chair Yellen Speaks at 6.00am (tomorrow morning)
AUD EXCHANGE RATES:
AUD/USD – 0.7661
AUD/GBP – 0.5884
AUD/EUR – 0.6833
AUD/NZD – 1.0579
AUD/JPY – 77.21
***Above rates are indicative wholesale rates and intended as a guide only***
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Senior Corporate FX Dealer
Phone Patrick - +61 03 9099 8459