Key Data Being Released Today.
Thursday
- USD ISM Service PMI: exp. 61.9
- USD FOMC Statement
- USD Federal Fund Rate: exp. 0.25%
- USD FOMC Press Conference
- All OPEC-JMMC Meetings
- GBP Asset Purchase Facility: exp. 875B
- GBP BOE Monetary Policy & Summary
- GBP Official Bank Rate: exp. 0.1%
The Aussie Dollar
All eyes were on the US FED this morning for their latest rate decision and monetary policy statement.
As expected, the FED held rates at 0.0-0.25% and announced that it would taper its QE program. The program is currently buying bonds at a pace of $120B per month, it will cut by $ 10B for Treasury Securities and $5B for Agency Mortgage-Backed Securities from mid-November and then again in mid-December.
The dovish surprise that appeared to momentarily send Aussie Dollar higher appears to have occurred because The Fed did not adjust its language regarding how it views inflation as “hawkishly” as some might have expected. The FED maintained its description of inflation being largely driven by transitory factors, though did add another sentence going into a little more detail as to the drivers of high inflation.
After the beating the Aussie Dollar has taken at the beginning of the week, the Aussie market be paying very close attention to the US Employment data coming out late Friday Evening our time. We have managed to dodge one bullet this week but if the US employment data comes out strong, there is potential for the Aussie Dollar to be sold off hard once again.
AUD/USD Daily Chart
Major Global Markets
- Stocks
- S&P 500 closed at 4660
- NASDAQ closed at 16146
- ASX 200 closed at 7392
- Currencies
- AUD/USD – At the time of writing this report trades at 0.7457
- AUD/JPY – At the time of writing this report trades at 85.02
- AUD/CNH – At the time of writing this report trades at 4.7645
- DXY (US Dollar Index) – At the time of writing this report trades 93.851
- AUD/EUR – At the time of writing this report trades 0.6421
- Bonds
- US 10-year Bonds are currently at 1.603
- Commodities
- Iron Ore – Trading at USD/T 99.35
- Gold – trading at USD/OZ 1773
- Brent Crude Oil – Trading at USD/Bbl 81.32