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.
RBA Comments Boost Aussie:
The Aussie Dollar has rallied overnight following a speech from RBA Chief Philip Lowe at the Armidale Business Chamber in regional NSW. Mr Lowe outlined in detail the current local and global economic environment we find ourselves in but spent most of his time looking more at the domestic economy. Some comments were mildly bearish, while others were more bullish and it looks like the market has decided to focus on those more bullish comments and the fact he shied away from confirming any further cut to interest rates at the October meeting in two weeks.
In closing he also noted "looking forward, there are some signs that, after a soft patch, the economy has reached a gentle turning point. This is evident in the fact that GDP growth over the first half of this year was stronger than it was over the second half of last year. We are expecting a further modest pick-up in the quarters ahead."
Equities fell overnight along with commodities prices contrasting the gains in the AUD. The NASDAQ was the worst performer down around 1.5%, while the other major U.S and European indices fell between 0.04% and 0.84%. Overall a risk off night for equities. Our local market looks set to open around 1% lower today.
There is no economic data out today.
AUD EXCHANGE RATES:
AUD/USD – 0.6768
AUD/GBP – 0.5410
AUD/EUR – 0.6138
AUD/NZD – 1.0722
AUD/JPY – 72.505
All Ords (XAO) – 6,856
Gold – A$2,252/oz
Silver – A$27.39/oz
WTI – US$56.81/barrel
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