EncoreFX’s daily market updates are written by our experienced and professional dealing team.
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.
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