Compass Global Markets' Blog

Market Update - 30th January 2019 - Local CPI Due At 11.30AM, RBA Watching Closely

Posted by Patrick Downes on January 30, 2019 at 8:28 AM

Please note that the commentary below is factual information provided to a group of readers as a web blog, and where an opinion is expressed by the author, it is GENERAL ADVICE only.

AUD Little Changed:

The AUD is little changed since yesterday but remains above 0.7100 vs. the Greenback and 0.6200 vs. the EURO, thanks to bullish iron ore prices and generally stronger commodities prices across the board. U.S stocks finished the overnight session mixed as the Dow Jones added 0.2%, while the Nasdaq and S&P closed lower; the tech heavy Nasdaq fell again as earnings misses escalated. The escalation in earnings misses for U.S corporate's along with sluggish growth and a persistent Trump-led trade war with China may prompt the U.S Federal Reserve to change it's tune on interest rates and stimulus when they meet again early tomorrow morning. As it stands U.S interest rates are at 2.5% having risen from 1.5% at the start of 2018.

Local CPI Numbers Out:

Local CPI otherwise known as the consumer price index is released this morning at 11.30am, with economists suggesting we'll see around 0.4% growth in the latest quarter which would be around the quarterly trend for the past 3 years. 0.4% CPI annualised is around 1.6%, which by the RBA's standards is lower than their target of 2-3%. Persistent low inflation or a lower than anticipated figure could be a dire outcome for the AUD and lead to projections of rate cuts from the RBA later this year, so definitely if you have payments to make today make these well before 11.30am.

AUD EXCHANGE RATES:

AUD/USD – 0.7119

AUD/GBP – 0.5438

AUD/EUR – 0.6222

AUD/NZD – 1.0438

AUD/JPY – 77.887

USD/BTC – $3,383

OTHER MARKETS:

All Ords (XAO) – 5,939

Gold – A$1,834/oz

Silver –  A$22.15/oz

WTI – US$53.25/barrel

DATA RELEASES TODAY:

AUD - Quarterly CPI at 11.30am

USD - Federal Funds Rate & FOMC Statement at 6.00am


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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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 DISCLOSURE AND DISCLAIMER - GENERAL ADVICE WARNING
The information provided in this report has been prepared without taking into account your particular objectives, financial situation or needs. You should consider whether our products are appropriate for you and read the FSG and PDS which are available on this website.
This report and must not be copied, either in whole or in part, or distributed to any other person.
All references to prices, amounts and currency are in Australian dollars unless otherwise noted.
This report is provided for Australian residents only and is not intended for use by residents of any other country.

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