Market Update – 13th August 2018 – AUD Heads Lower As Trump Crushes The Turkish Lira & Equities

Donald Trump caused more turmoil in markets late last week when he slapped/forecast further tariffs on both China and Turkey. The tariffs on some Turkish imports caused the Turkish Lira to go into a meltdown losing as much as 25% which bred a level of contagion fear which has seen the Aussie dollar and other currencies pummelled along with both U.S and European equities. In summary markets are a see of red this morning, with the only beneficiary being Gold which is up around 1% and foreign travellers picking up substantial bargains in Turkey.

AUD/USD in the mid-0.72’s is the lowest level we’ve been since Jan 2017 and for our export clients presents one hell of an opportunity to convert your surplus USD back into AUD. More broadly and commenting on current levels, my personal opinion would be that this is a short term aberration which at the moment benefits exporters but as the majority of you are importers I wouldn’t be too concerned – keep an eye out for the inevitable bounce.

No economic data is released today however a bit of economic data out later in the week in employment change on Thursday.

AUD EXCHANGE RATES:

AUD/USD – 0.7258

AUD/GBP – 0.5684

AUD/EUR – 0.6373

AUD/NZD – 1.1048

AUD/JPY – 80.301

USD/BTC – $6,316

OTHER MARKETS: 

All Ords (XAO) – 6,366

Gold – A$1,663/oz

Silver –  A$21.03/oz

WTI – US$67.03/barrel

DATA RELEASES TODAY:

No economic data today

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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