Market Update – 13th September 2018 – U.S Invites China To New Round Of Trade Talks Boosting Markets & The AUD

In some positive signs overnight the U.S has invited China to a new round of trade talks aimed at ending any further escalation in their ongoing trade dispute and perhaps also putting to bed the threatened US$200b in tariffs on Chinese exports to the U.S. Suffice to say the world and financial markets more broadly are watching and listening very closely, so much so that even the hint of the new trade talks sent metals prices soaring overnight and with them also commodities currencies including the Canadian Dollar and our own AUD.

AUD was higher against all the majors while AUD/USD had its best session in about a month, managing to add about 100 points or 1 cent since yesterday. Iron ore and copper prices which are perhaps the best barometers of risk sentiment both made solid gains with iron ore and copper up 2.6% and 2.3% respectively.

The AUD is certainly not out of the woods just yet, however the 1 cent surge certainly provides some relief to long suffering importers but also an opportunity to make USD payments today if required.

Ahead today we have Aussie employment data at 11.30am followed by the Bank of England’s decision on interest rates around 9.00pm tonight AEST. Employment data out this morning is probably the biggest catalyst for any move in AUD today.

AUD EXCHANGE RATES:

AUD/USD – 0.7143

AUD/GBP – 0.5465

AUD/EUR – 0.6136

AUD/NZD – 1.0900

AUD/JPY – 79.471

USD/BTC – $6,298

OTHER MARKETS: 

All Ords (XAO) – 6,283

Gold – A$1,681/oz

Silver –  A$19.88/oz

WTI – US$70.00/barrel

DATA RELEASES TODAY:

AUD – Employment Change & Unemployment Rate at 11.30am

GBP – Official Bank Rate & Monetary Policy Summary at 9.00pm

USD – CPI at 10.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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