Market Update – 12th June 2019 – AUD Surges But Local Data Releases This Weak Paint Bleak Picture Of Economy

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 Edges Higher:

The AUD has pushed higher since my Wednesday update (http://bit.ly/2ScP5Uh) thanks to positive sentiment and a surging U.S equities market. In fact the Dow Jones has surged past 27,000 for the first time following two solid months of gains.

Local Data Poor:

We haven’t seen too much economic data out this week, but what we have seen is weaker NAB Business Confidence along with even weaker Westpac Consumer Confidence which came in at -4.1%. So while on the one hand the AUD is holding up and equities surging as a result of expectations of lower interest rates globally, on the other hand the local economy does really appear to be in a rut. Perhaps the two rate cuts from the RBA were warranted after-all – I guess time will tell.

U.S CPI figures are released this evening. Expectations are for very marginal growth at 0.1% for the month.

AUD EXCHANGE RATES:

AUD/USD – 0.6943

AUD/GBP – 0.5535

AUD/EUR – 0.6164

AUD/NZD – 1.0434

AUD/JPY – 75.345

OTHER MARKETS:

All Ords (XAO) – 6,805

Gold – A$2,015/oz

Silver –  A$21.70/oz

WTI – US$60.42/barrel

DATA RELEASES TODAY:

USD – PPI m/m at 10.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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