Compass Global Markets' Blog

Market Update – 6th July 2016 – Aussie Dips Slightly On Poor Economic Data And Falls On Equities

Posted by Patrick Downes on July 6, 2016 at 9:36 AM

Aussie economic data released yesterday wasn’t at all fantastic but that certainly didn’t concern the RBA who mentioned in their RBA Statement that for the most part the Australian economy is transitioning nicely away from a mining-export led economy. Another interesting note from the meeting statement was that while they felt it the right move to keep rates on hold once again they also made a point to let the market know very clearly that they don’t particularly want the Aussie dollar to appreciate too much higher as current low levels are supporting the economy.

So what do we take from this? Well I think it’s pretty clear, should the Aussie dollar start to appreciate again, we could well see some intervention from the RBA, perhaps through a rate cut or perhaps through selling AUD. Of course this is speculation, but it probably suggests taking cover anywhere above 0.74 where possible is probably prudent.

DATA RELEASES TODAY:

EUR – ECB President Draghi Speaks at 6.00pm

USD – Non-Manufacturing PMI at midnight

USD – FOMC Meeting Minutes at 4.00am

AUD EXCHANGE RATES:

AUD/USD – 0.7462

AUD/GBP – 0.5729

AUD/EUR – 0.6739

AUD/NZD – 1.0429

AUD/JPY – 75.883

***Above rates are indiciative wholesale rates and intended as a quide only***

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Patrick Downes

Senior Corporate FX Dealer

 Compass Markets

Contact Patrick for a quote on 0431 278 632

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