Market Update – 12th June 2019 – AUD Unchanged But ASX On A Tear

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/USD Unchanged:

AUD/USD is unchanged this morning while the other major AUD crosses have moved only marginally from where they were this time yesterday. AUD/EUR is clinging to 0.61 on the wholesale market and AUD/GBP is holding in the 0.54’s.

The local share market yesterday made solid gains with the All Ords up 1.52%. Another positive finish this month would mean we’re in the midst of the best stock market rally since 2013 when the ASX made gains for 9 consecutive months between June 2012 and Feb 2013. Right now we’re on track for 6 consecutive months of gains which began in January.

Upcoming Data:

A bit of data is out today, including Westpac Consumer Sentiment at 10.30am, followed by a speech from ECB President Draghi tonight and U.S CPI numbers. Westpac Consumer Sentiment doesn’t usually have a forecast and today is no different. The data recently has been exceptionally sporadic, choppy and unpredictable with consumers one month buoyant and the next month less so. ECB President Draghi’s speech has the potential to move AUD/EUR, while U.S CPI is the most important data release over the next 24 hours. U.S CPI is expected to come in around 0.2%, but any worse than this could see dovish comments from Fed Chairman Powell or betting for a rate cut in the U.S increase.

AUD EXCHANGE RATES:

AUD/USD – 0.6930

AUD/GBP – 0.5439

AUD/EUR – 0.6114

AUD/NZD – 1.0542

AUD/JPY – 75.248

OTHER MARKETS:

All Ords (XAO) – 6,624

Gold – A$1,906/oz

Silver –  A$21.19/oz

WTI – US$53.02/barrel

DATA RELEASES TODAY:

AUD – Westpac Consumer Sentiment at 10.30am

EUR – ECB President Draghi Speaks at 6.15pm

USD – CPI m/m at 10.30pm