Compass Global Markets' Blog

Market Update - 5th January 2017 - AUD/USD Posts Third Day Of Gains Despite Bullish Fed Reserve Minutes

Posted by Patrick Downes on January 5, 2017 at 8:30 AM

The Aussie dollar performed quite well again overnight, adding around 0.8% vs. the Greenback and stringing together a third day of gains. The AUD gains come amidst broad weakness in other currencies including the U.S Dollar and a strong early showing from riskier assets such as commodities and equities which have pushed higher again over the past 24 hours.

AUD/USD's resilience and early gains in 2017 is certainly impressive particularly give that in the latest Federal Reserve FOMC minutes released last night, almost all U.S Federal Reserve members believe “that the upside risks to their forecasts for economic growth had increased as a result of prospects for more expansionary fiscal policies in coming years" and the likelihood that the next rate hike could come as early as June according to some forecasts.

Ahead tonight is UK Services PMI followed by preliminary U.S jobs numbers in the form of ADP Payrolls. This data is due around midnight and precedes the more accurate and closer watched official non-farm employment data released Friday evening. Expectations are for around 170K new jobs to have been created.

DATA RELEASES TODAY:

GBP – Services PMI at 8.30pm

USD – ADP Employment Figures at 12.15am

AUD EXCHANGE RATES:

AUD/USD – 0.7276

AUD/GBP – 0.5906

AUD/EUR – 0.6940

AUD/NZD – 1.0452

AUD/JPY – 85.390

***Above rates are indicative wholesale rates and intended as a guide only***

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Patrick Downes

Senior Corporate FX Dealer

Compass Markets

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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Topics: Market, Report

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