News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
AUD/USD Little-Changed as Company Profits Data Disappoints

AUD/USD Little-Changed as Company Profits Data Disappoints

Bradley Kearns,

Talking Points:

  • Aussie Dollar slightly lower after data shows companies’ profits fell 2.8% in 4Q
  • Timid Aussie follow-through may reflect traders waiting for the RBA rate decision
  • Financial markets pricing in 5 percent probability of 25bps RBA interest rate cut

See how retail traders are positioned in the Australian Dollar with the DailyFX SSI.

AUD/USD edged slightly lower after Australian companies’ profits dropped by 2.8 percent (QoQ) in the fourth quarter versus expectations of a 1.8 percent decrease. Inventories unexpectedly contracted for the first time since the fourth quarter of 2014, dropping 0.4 percent. Economists were looking for a 0.1 percent increase ahead of the release.

Separately, January’s lending statistics also crossed the wires. Private sector credit grew 0.5 percent month-over-month while the year-on-year growth rate ticked down to 6.5 percent. Both outcomes matched consensus forecasts.

The Aussie’s timid reaction and lack of follow-through after the soft earnings print lacked may reflect traders’ unwillingness to commit to a directional bias ahead of the RBA monetary policy announcement due later this week. The markets price the probability of an interest rate cut at this meeting at 5 percent. On whole, the markets are pricing in 42 basis points of easing over the next 12 months according to overnight index swaps.

AUD/USD Little-Changed as Company Profits Data Disappoints

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.