In the absence of any economic data overnight and with only 2 days left until Winter well and truly sets in I think it's an opportune time to look at what the Aussie dollar has done this year.
The Aussie dollar which had typically performed quite poorly in January did just the opposite this year rallying from the lowly 0.71's all the way to the high 0.76's by Feb 2nd. This move certainly caught many by surprise including myself and the many importers who hedged in the 0.71's. Around a month and a half later we hit the highest level of the year at 0.7749 and its since been a downward trajectory for AUD/USD.
AUD/EUR and AUD/GBP have performed quite poorly of late thanks in part to improving growth prospects across Europe and the U.K and in part because of a weaker than anticipated commodities market which had shown real signs of a rebound during 2016. That rebound certainly hasn't continued through the first half of 2017, however remembering that mining is cyclical in nature suggests that perhaps the second half of 2017 will be better for commodities and perhaps therefore also better for the Aussie dollar.
DATA RELEASES TODAY:
AUD EXCHANGE RATES:
AUD/USD – 0.7409
AUD/GBP – 0.5768
AUD/EUR – 0.6647
AUD/NZD – 1.0520
AUD/JPY – 82.436
***Above rates are indicative wholesale rates and intended as a guide only***
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