U.K Prime Minister Theresa May officially triggered Article 50 overnight kicking off what will be an extremely long winded set of negotiations as the U.K begins to disentangle itself from the all encompassing tentacles of the European Union. The Pound fell as a result of the renewed focus on it which juxtaposed the strong gains the U.K's local currency had managed to make over the past week or so reminding me of the very poignant phrase in trading circles "buy the rumour, sell the news"...or was it "sell the rumour, buy the news" - either way you get the idea.
The Aussie dollar on the other hand has surged back into favour with another bullish run on commodities supporting our lucrative export trade with China and the rest of the world. Where the Aussie goes from here is anyone's guess but with recent resistance around the 0.77's vs the Greenback it'll take something pretty special to see us move higher. AUD/GBP and AUD/EUR however both continue to grind higher albeit slowly but definitely not worth getting complacent especially with U.K inflation coming back strongly and Europe getting closer to recovery.
Ahead this evening is Final quarterly GDP figures out of the U.S, however this comes after preliminary figures which have already painted the picture for us. Don't expect too much movement here as U.S GDP figures are mostly priced in now.
DATA RELEASES TODAY:
USD – Final GDP q/q at 11.30pm
AUD EXCHANGE RATES:
AUD/USD – 0.7616
AUD/GBP – 0.6110
AUD/EUR – 0.7069
AUD/NZD – 1.0844
AUD/JPY – 84.641
***Above rates are indicative wholesale rates and intended as a guide only***
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Senior Corporate FX Dealer
Phone Patrick - 0431 278 632