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.
The AUD had a brief correction yesterday but has managed to claw back those losses overnight bringing most AUD crosses back in line with where they were on Monday morning (my last update). AUD/USD seems to have entrenched itself in the 0.68's despite the drone attacks on Saudi Arabia's oil infrastructure, while AUD/EUR and AUD/GBP are locked in the 0.61's and 0.54's respectively. AUD/JPY was the only currency pair to appreciate notably from earlier in the week and is today trading just on the 74 handle on the wholesale market.
In the U.S stocks made modest gains with the tech heavy Nasdaq the best performer up 0.4%, while in Europe stocks finished mix. The UK FTSE and German Dax closed lower, while the French CAC and broad Euro Stoxx 50 index posted gains of a quarter percent and 0.08% respectively.
All Eyes On Fed:
All eyes are back on the Fed again with the market pricing in a 25 basis point cut to U.S interest rates from 2.25% to 2.00%. The cut seems to be pretty well priced in and so hard to see much volatility on the cut itself tonight. However, comments from U.S Fed Chairman Powell is where the action will take place, with many investors still unclear on where exactly Powell stand on interest rates, QE and the U.S economy. We all know Trump wants lower rates leading up to elections next year, but we also know Powell is not one to listen to demands from Trump. The FOMC press conference and statement occur after the interest rate decision and that's potentially where we'll some volatility.
AUD EXCHANGE RATES:
AUD/USD – 0.6834
AUD/GBP – 0.5460
AUD/EUR – 0.6169
AUD/NZD – 1.0762
AUD/JPY – 73.900
All Ords (XAO) – 6,801
Gold – A$2,187/oz
Silver – A$26.24/oz
WTI – US$58.65/barrel
DATA RELEASES TODAY:
GBP - CPI y/y at 6.30pm
USD - Federal Funds Rate & FOMC Statement at 4.00am (tomorrow morning)
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Senior Corporate FX Dealer
Phone Patrick - 0431 278 632
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