Aussie company operating profits were off nearly 5% in the latest quarter as a result of a higher Aussie dollar impacting our large commodities exporters. However offsetting that has been generally higher commodities prices which has perhaps avoided a much larger fall in operating profits amongst Aussie companies. Aussie bricks and mortar retail which has been in the doldrums for some time is still certainly struggling with the likes of Amazon on its way but also Aussie online retailers like Kogan (listed on the ASX) performing very well in its latest filing.
Generally speaking markets remain quite subdued at the moment with the Aussie barely shifting from a tight trading range between 78 and 80. AUD/EUR similarly has remained range bound since early May, failing to break out of a 0.6600-0.6900 range.
It's Aussie cash rate day today with the RBA meeting at 2.30pm to determine the level of the official cash rate. As it stands we are at 1.5% with economists tipping no change to the official rate. However as is always the case the focus will be on the rate statement or accompanying commentary to see where the RBA's head is at with respect to the domestic economy and future rate hikes or cuts.
AUD EXCHANGE RATES:
AUD/USD – 0.7946
AUD/GBP – 0.6146
AUD/EUR – 0.6678
AUD/NZD – 1.1093
AUD/JPY – 87.153
DATA RELEASES TODAY:
AUD – Cash Rate and Rate Statement at 2.30pm
GBP – Services PMI at 6.30pm
***Above rates are indicative wholesale rates and intended as a guide only***
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