Global equities finished the first full week of 2017 on a positive note with most indices including the ASX200 up modestly. The Aussie dollar in contrast didn't perform quite so well, falling around 0.75% versus the Greenback on Friday evening despite a weaker than anticipated U.S Non-Farm employment number which came in about 20,000 jobs short of expectations. Ordinarily AUD/USD would be expected to rally in the event of weaker U.S jobs numbers however in this case it was perhaps rather traders taking profits on what has been a profitable trade since the beginning of January for those long (buyers of) AUD/USD. AUD/EUR and AUD/GBP remain reasonably strong hovering just under 0.7000 and 0.6000 respectively, so no issues here, just buy at market when payments come up.
The week ahead looks pretty quiet with only building approvals this morning and retail sales at 11:30am tomorrow morning. Retail sales are tipped to come in on trend at around 0.4% but certainly economists and politicians will be hoping for a strong bump in the number. Other data releases include Chinese CPI/inflation figures around midday tomorrow followed by U.S retail sales and PPI on Friday evening.
A lot of you are returning to work today after the long break so I wish you and your respective businesses all the best in 2017 and certainly hope it's your best year yet.
DATA RELEASES TODAY:
AUD - Building Approvals at 11.30am
AUD EXCHANGE RATES:
AUD/USD – 0.7273
AUD/GBP – 0.5928
AUD/EUR – 0.6907
AUD/NZD – 1.0446
AUD/JPY – 85.27
***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