Market Update – 10th March 2020 – Stocks Sink In Worst Sell Off Since GFC

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.

Markets Melt:

The Aussie Dollar has held up quite well in comparison to equities markets which yesterday saw their worst falls since the GFC a little over 12 years ago. We all new a severe correction would occur eventually, however I’ll have to admit I didn’t see that Monday morning sell off coming. All in all, the ASX All Ords had its second worst day on record, falling a whopping 7.33%, in the U.S the Dow fell 7.79%, while the Euro Stoxx 50 fell by an even greater margin losing 8.45% by the close of trade. Our local market is tipped to open another 6.5% lower today in what could be another particualrly savage sell off.

AUD Lower:

The Aussie Dollar has also copped a hiding, falling as much as 200 points vs. the Pound since early Feb, while AUD/USD is off a similar amount. Compared to stock markets our currency has held up pretty well, especially given the likely hit to tourism, education and mining which will all feel some contraction.

Where do we go from here? That’s a good question and one I don’t have the answer too.

Importers best bet is to continue to hedge FX exposures with Forward Contracts, while for exporters there is no need to hurry as lower interest rates (and therefore a lower AUD) are likely.

As for the stock market, look away for the time being and don’t panic sell particularly if you are a long term investor. If you’re a bargain hunter you may want to take a nibble on stocks. But I wouldn’t be taking any huge bites just yet.


AUD/USD – 0.6555

AUD/GBP – 0.4991

AUD/EUR – 0.5716

AUD/NZD – 1.0333

AUD/JPY – 67.033


All Ords (XAO) – 5,822

Gold – A$2,549/oz

Silver –  A$25.82/oz

WTI – US$30.45 barrel



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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 



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