Compass Global Markets' Blog

Market Update - 5th June 2017 - Aussie Up On Poor U.S Jobs Numbers & Surging Iron Ore Prices

Posted by Patrick Downes on June 5, 2017 at 8:56 AM

U.S non-farm payrolls numbers, otherwise known as employment figures came in below expectations Friday evening helping AUD/USD to push back above 0.7400 and casting some doubt over future U.S rate hikes. The poor numbers and hence lower USD helped boost U.S equities with the NASDAQ the best performer up around 1%.

It's cash rate week for the Aussie dollar with the next meeting of the RBA happening tomorrow at 2.30pm. All expectations are that we'll see no change to the official cash rate from 1.5%. However some Aussie economic data has been quite poor of late and so there is in my opinion a faint chance we could see some stimulus from the RBA in the form of a rate cut, particularly given GDP was negative in the December quarter of 2016, and expectations are that we'll see another negative quarter in figures released in Wednesday's quarterly GDP numbers.

Metals prices namely iron ore also rallied a further 3% which no doubt provides support for the Aussie through Monday.

DATA RELEASES TODAY:

GBP - Services PMI at 6.30pm

USD – ISM Non-Manufacturing PMI at midnight AEST

AUD EXCHANGE RATES:

AUD/USD – 0.7403

AUD/GBP – 0.5746

AUD/EUR – 0.6562

AUD/NZD – 1.0384

AUD/JPY – 81.865

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

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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Topics: Report, Market

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