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.
Bank Holiday Yesterday:
It was a bank holiday right across Australia yesterday, as such all cleared payments over the long weekend will go out first thing this morning.
Overnight in the Northern Hemisphere, U.S and European stock markets opened the week mixed with U.S indices led lower by the S&P 500 which fell 0.45%, while in Europe indices were led higher by the Euro Stoxx 50 and German Dax which gained around 0.70%. Despite the mixed signals our local market looks set to open around 0.35% higher at 10.00am.
What's The AUD Doing?
Really we've just seen a continuation of light volatility in a tight range for the AUD. In fact AUD/USD has in the past two months traded between around 0.6670 and 0.6890 - 220 points is an unusually tight trading range and it's unlikely to last forever . With the RBA having a bias to cut interest rates unfortunately the reality remains that lower lows are more likely than higher highs. As such importers should be aware and ready to act on any increases in the value of the AUD.
U.S Fed Chair Jerome Powell has another speech tonight, the market has tended to move on his speeches so expect more of the same early tomorrow morning. Topics of discussion will again be interest rates, the economy and the impacts of the never ending trade war with China.
AUD EXCHANGE RATES:
AUD/USD – 0.6700
AUD/GBP – 0.5442
AUD/EUR – 0.6103
AUD/NZD – 1.0669
AUD/JPY – 71.900
All Ords (XAO) – 6,686
Gold – A$2,218/oz
Silver – A$25.90/oz
WTI – US$52.75 barrel
DATA RELEASES TODAY:
USD – Fed Chair Powell Speaks at 4.50am (tomorrow morning)
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Senior Corporate FX Dealer
Phone Patrick - 0431 278 632
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