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.
Equities & AUD Rally:
The Aussie Dollar made inroads vs. most of the majors last week, however AUD/USD continued to struggle with the local currency losing around half a percent vs. the Greenback since last Monday. In all the AUD is down 360 points or 5% vs the USD since January 1st which is it’s worst start to the year since 2016. The optimist in me would suggest it bodes well for February, however Chinese coronavirus containment measures are likely to be a drag on global economic activity while recent bush fires across Australia could also hinder growth and economic activity at home, particularly tourism.
Equities & Commodities:
Stocks and commodities have been volatile since the coronavirus first hit mainstream media and Copper which is the bellwether metal has seen its value fall by 10% over the month of March. Other metals have also taken a hit as economists and investors try to quantify the impact of whole cities shut down in Mainland China, particularly those manufacturing hubs right across the country. U.S equities lost around 0.5-1% on Friday night, while European equities fell as much as half a percent. ASX Futures are suggesting a flat start to the week.
No economic data released today, so all eyes will be on China again and any stimulus they may pump into their domestic economy amid current containment measures.
AUD EXCHANGE RATES:
AUD/USD – 0.6638
AUD/GBP – 0.5139
AUD/EUR – 0.6063
AUD/NZD – 1.0381
AUD/JPY – 72.845
All Ords (XAO) – 7,121
Gold – A$2,354/oz
Silver – A$26.53/oz
WTI – US$50.49 barrel
DATA RELEASES TODAY:
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Phone Patrick – 0431 278 632
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