Risk aversion was on the cards last night with equities and commodities all taking a dive, however the Aussie dollar which would typically be grouped as a risk asset didn't fall, but rather made gains vs. the Greenback and the Euro. AUD/JPY did fall as the safe haven of the Japanese Yen was bid higher.
In news yesterday we saw the Aussie cash rate held steady at 1.5% as "conditions in the global economy are continuing to improve. Labour markets have tightened further and above-trend growth is expected in a number of advanced economies". Essentially not much different to the rhetoric coming out of the RBA over the past year.
Ahead today is Aussie GDP figures and tonight U.S non-manufacturing data. The market is expecting to see GDP at around 0.8% for the latest quarterly reading.
AUD EXCHANGE RATES:
AUD/USD – 0.7999
AUD/GBP – 0.6133
AUD/EUR – 0.6711
AUD/NZD – 1.1042
AUD/JPY – 86.937
DATA RELEASES TODAY:
AUD – GDP at 11.30am
USD - ISM Non-Manufacturing PMI at midnight
***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