Market Update – 10th May 2018 – AUD Stable Despite Stronger Equities & Commodities Prices Overnight

Equities both locally and abroad have continued to surge higher this month denying the ‘sell in May and go away’ trend which typically drags on equities this time of year. Unfortunately the same can’t be said for the Aussie dollar as we yet again see a sell off in the Aussie Dollar during May as I suggested could be the case in my Market Update dated “1st May 2018 – Sell In May And Go Away? What’s In Store For the AUD This Month?

The Aussie dollar is off around 100 points vs. the Greenback since the start of May, while AUD/GBP is lower by around 1%. AUD/EUR has bucked that trend so far with growth in Europe not quite living up to the hype which is dragging on the Euro.

Interestingly Gold and Oil have both continued to push higher during May in line with equities and the USD, which in the scheme of theoretical economics seems rather counter intuitive given that both Gold and Oil are denominated in US Dollars and equities are a barometer for good times and Gold typically a barometer for risk aversion…certainly markets today are not acting in the way the economic textbooks would have you think they should operate.

The U.K decide on interest rates tonight with no expectations of any changes, while U.S CPI is due later this evening.


AUD/USD – 0.7459

AUD/GBP – 0.5504

AUD/EUR – 0.6291

AUD/NZD – 1.0748

AUD/JPY – 81.856

USD/BTC – $9,247


All Ords (XAO) – 6,204

Gold – A$1760/oz

Silver –  A$22.12/oz

WTI – US$71.17/barrel


GBP – Manufacturing Production at 6.30pm

GBP – Bank of England Official Bank Rate and Monetary Policy Summary at 9.00pm

USD – CPI at 10.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 




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