By Nicholas Cork
AUD has consolidated in a higher range for the last 24 hours, testing both sides after yesterday’s wages data both disappointed and surprised the market. The disappointment was a smaller Q4 rise in wage growth, the surprise was the fastest pace of wage growth in 5 years….. can anyone actually concur? AUD briefly dipped towards 0.7140 before rebounding towards 0.7190, and sits halfway between the two to start today’s session.
Overnight the FED minutes was widely anticipated and did not disappoint as they signaled the end of their balance sheet unwinding but uncertainty still around the need to hike again or not. US yields began to rise as did the USD. The response from US participants was loosely that “they will have a permanently gigantic balance sheet……” Brexit renegotiations apparently are progressing well, and PM May has stated the obvious saying that ‘time is of the essence’
Locally all eyes on today’s unemployment data which should keep AUD rangebound until 11.30 am Syd time. The market is also awaiting a response to the US demands for a stable Chinese currency .. that will impact the AUD.
© Copyright - EncoreFX, 2018.EncoreFX (Australia) Pty Ltd ABN 42 607 244 879 AFSL 479 870 is the issuer of the financial products in Australia. The information on this website has been prepared without taking into account your objectives, financial situation or needs and so before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. You should obtain the product disclosure statement (PDS) for the relevant product and consider the PDS before making any decision to acquire the product. The information on this website is not directed at residents of any country other than Australia and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of, and comply with, any local law or regulation to which they are subject.