Please note that the commentary below is factual information provided to a group of readers as a web blog, and where an opinion is expressed by the author, it is GENERAL ADVICE only.
AUD Gains & Brexit Update:
We're up again overnight with the Aussie Dollar adding around half a percent right across the board as RBA Governor Lowe (in a speech at The Australian National University, in Canberra) hosed down any chance of seeing negative interest rates in Australia.
The best performer though was AUD/GBP which is up nearly 1% as the British Parliament passed overnight a bill that will send Brits back to the polling booths in December to cast a definitive vote on Brexit. This could go either way, but you'd have to think we're now in the final legs of a Brexit outcome here, as such expect more GBP volatility leading up to December 12th.
We have another big 24 hours of economic data which kicks off at 11.30am with local CPI numbers. Forecasts are that we'll see 0.5% growth in quarterly CPI, which would be below last quarter and on trend with the exceptionally low inflation we've seen over the past 5 years.
We then get U.S preliminary jobs numbers other wise known as ADP Non-Farm Employment Change at 11.15pm. This is closely followed by U.S GDP numbers and then the U.S Fed Interest Rate decision at 5.00am tomorrow morning. Volatility will be up and about, so those clients happy with current AUD rates and wishing to avoid a lower or higher AUD tomorrow would be best suited to book payments and FX deals before 11.30am this morning.
AUD EXCHANGE RATES:
AUD/USD – 0.6831
AUD/GBP – 0.5300
AUD/EUR – 0.6143
AUD/NZD – 1.0760
AUD/JPY – 74.400
All Ords (XAO) – 6,848
Gold – A$2,167/oz
Silver – A$25.94/oz
WTI – US$55.51 barrel
DATA RELEASES TODAY:
AUD – CPI q/q at 11.30am
USD - ADP Non-Farm Employment Change at 11.15pm
USD - Advance GDP q/q at 11.30pm
USD - FOMC Statement and Federal Funds Rate at 5.00am