You need only to take a glimpse at a chart of AUD/USD to realise the past month has been quiet by almost all measures. Since August started we've been very much range bound with AUD/USD drifting between around 0.7800 and 0.8000 whilst spending the bulk of time in the 0.7900's or thereabouts. Volatility however has picked up in other markets such as equities but the Aussie has remained quite subdued. Whether this continues into next month is impossible to tell, but if we look back over the past year low volatility months have typically been followed by substantially higher volatility with Feb and May pretty good examples - rarely have we seen low volatility continue longer than a month. With that said, it's always good to expect the unexpected particularly if you have tight costings on your imports or exports. To chat about ways to hedge against volatility in the Aussie dollar please do reach out and I can run you through how we can help.
Ahead today is some local Aussie date with Private Cap. Expenditure and Private Sector Credit due around 11.30am. Other than that it's pretty quiet with respect to data announcements.
AUD EXCHANGE RATES:
AUD/USD – 0.7905
AUD/GBP – 0.6115
AUD/EUR – 0.6647
AUD/NZD – 1.0969
AUD/JPY – 87.189
DATA RELEASES TODAY:
AUD – Private Cap. Expenditure at 11.30am
AUD - Private Sector Credit at 11.30am
***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