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 Off Nearly 3% Through The Week:
AUD/USD has continued its slide through the weekend and starts Monday nearly two cents lower than this time last week when AUD/USD was trading a little over 0.7250. It’s a similar story for AUD/JPY, AUD/GBP and AUD/EUR which have all also succumbed to selling pressure following last weeks dovish comments from the RBA and generally weaker economic data.
U.S Stocks Finish Week Slightly Lower:
U.S stocks finished Friday’s session little changed, while European stocks fell with the German DAX down over 1%. The flat finish in the U.S sees our local index likely to start the morning flat with the ASX 200 hovering just above the 6,070 level – the recent high was around 6,350 back in August. Metals prices followed the same trajectory as the AUD losing ground during the week, with the exception of iron ore which remains on a tear. Chinese businesses head back to the office today after a week long break and it’ll certainly be interesting to watch the iron ore futures price as steel mills get back to business. Some forecasts now have iron ore to hit $US100 a tonne following the Vale mine disaster. These sorts of prices would be an absolute boon for our iron ore miners.
No economic data out locally today, however we see a raft of data out of the U.K tonight with the release of GDP and manufacturing numbers. Those with GBP exposures would be wise to book ahead of tonight’s releases to avoid risk.
AUD EXCHANGE RATES:
AUD/USD – 0.7061
AUD/GBP – 0.5443
AUD/EUR – 0.6236
AUD/NZD – 1.0479
AUD/JPY – 77.516
All Ords (XAO) – 6,136
Gold – A$1,847/oz
Silver – A$22.25/oz
WTI – US$52.93/barrel
DATA RELEASES TODAY:
GBP – GDP & Manufacturing Production at 8.30pm
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