Market Update – 12th March 2019 – AUD Bounces As U.S Equities Have Best Night Since January

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.

A public holiday in Victoria yesterday hence no report from me as I chose lounging around over following financial markets – it’s good to take a break sometime.

Overnight AUD Bounces:

The good news this morning is the AUD appears to have bounced back and is trading around half a percent higher versus the USD, GBP and JPY this morning. AUD/NZD has however continued it’s decline with the pair now down around 800 points since mid August.

U.S Stocks Surge:

Markets performed well overnight, with U.S equities flying. The best performer was the Nasdaq up over 2%, followed by the S&P 500 up nearly 1.5% and the Dow finishing the session just shy of 0.8% higher. Why the big bounce? As is always the case it’s usually several factors which may include momentum, sentiment, news or data. Overnight the release of better than anticipated retail sales showed gave the market something to cheer about while on Friday night the unemployment rates dropped to 3.8% while average earnings rose. All rosy data and not the bleak view that some bears hold.

Ahead today is home loans data and business confidence followed by U.K GDP figures and U.S inflation numbers tonight. We could see some further good moves for the AUD tonight if the data shows the world economy continuing to make progress.

AUD EXCHANGE RATES:

AUD/USD – 0.7035

AUD/GBP – 0.5342

AUD/EUR – 0.6252

AUD/NZD – 1.0298

AUD/JPY – 78.268

OTHER MARKETS:

All Ords (XAO) – 6,263

Gold – A$1,829/oz

Silver –  A$21.67/oz

WTI – US$57.01/barrel

DATA RELEASES TODAY:

AUD – Home Loans & NAB Business Confidence at 11.30am

GBP – GDP & Manufacturing Production at 8.30pm

USD – CPI at 11.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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