The Aussie dollar has failed for a third time to break and hold above 0.7600 vs the Greenback with the current rate now back in the low 75's on the wholesale market; and with building approvals, trade balance figures and the RBA cash rate decision due this afternoon AUD certainly could be anywhere come 5pm this arvo.
Commodities and equities were mostly mixed overnight with iron ore the shining light up around 3% on the futures market, while Aussie equities look set to give up some of yesterdays gains today.
As mentioned above building approvals and trade balance figures are due around 11.30am this morning followed by the RBA cash rate decision at 2.30pm. Expectations are very much split with one camp thinking it's too soon to cut rates and the other (which I'm a part of) thinking rates must be cut today by at least 25 basis points if the RBA are to have any chance of staving off a recession. Officially rates currently stand at 1.75%.
Certainly more volatility is on the way today, so you'd best fasten your seat-belts and consider booking payments before 2.30pm.
DATA RELEASES TODAY:
AUD - Building Approvals and Trade Balance Figures at 11.30am
AUD - Cash Rate Decision at 2.30pm
GBP - Construction PMI at 6.30pm
AUD EXCHANGE RATES:
AUD/USD – 0.7527
AUD/GBP – 0.5707
AUD/EUR – 0.6741
AUD/NZD – 1.0496
AUD/JPY – 77.069
***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