Market Update – 11th April 2019 – AUD Moves Higher With Robust Commodities Prices & Positive Sentiment

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.

AUD Moves Higher:

We finally saw some AUD action overnight thanks to positive sentiment and strong commodities prices which have finally flowed through to a higher AUD. AUD/USD broke and held through 0.7100, while AUD/EUR is sitting pretty around the mid 0.63’s mark. As has been the case lately and as I’ve said a few times to many of my clients: Importers would be wise to take these opportunities when the AUD moves higher, a bird in the hand is better than two in the bush. And while I understand the thought that what if AUD goes a little higher, keep in mind what if it fails here and drifts lower once again.

Westpac Consumer Sentiment Stronger:

In terms of data released yesterday, it was generally more optimistic data. We saw a jump in Westpac Consumer Sentiment, while in the UK manufacturing and industrial production PMI improved. Europe kept interest rates on hold at 0.00%, a full 1.5% below our own RBA set interest rates. CPI in the U.S grew, but stripping out energy and food we saw a flat reading at 0.1% for the month. Overall the global economy remains in growth but it’s slow and meandering growth, where in the world the next tidal wave of growth happens is anyone’s guess but India should be at the top of that list.

Chinese CPI Due:

Ahead today is Chinese CPI and U.S Producer Prices. Chinese CPI is the big one and a strong number should support commodities prices and the AUD. A poor number could see us drift off again.

Final note for importers: AUD is up, think about covering some of your foreign currency exposures. 

AUD EXCHANGE RATES:

AUD/USD – 0.7137

AUD/GBP – 0.5445

AUD/EUR – 0.6326

AUD/NZD – 1.0561

AUD/JPY – 79.226

OTHER MARKETS:

All Ords (XAO) – 6,316

Gold – A$1,824/oz

Silver –  A$21.25/oz

WTI – US$64.45/barrel

DATA RELEASES TODAY:

CNY – CPI at 12.30pm

USD – PPI at 11.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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