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 Makes Big Gains:
The Aussie dollar has been the major beneficiary of lower domestic Covid19 cases with the local currency adding as much as 400 points since last Monday vs. the Greenback and 300 points vs. the Euro. I mentioned a few weeks back that the bottom might be in for the AUD and I’m inclined to double down on that call given the dramatic fall in the number of domestic Covid19 cases. Australia recorded only 41 cases yesterday down from a high of 460 per day on the 28th of March – a little over two weeks ago. Social distancing, quarantining and generally better hygiene is undoubtedly working and pressure is now building on the Government to loosen some of the restrictions that have been in place since early March. If Australia can get the economy going earlier than other countries we may well again become a safe haven for investment which would support the AUD. The lucky country may still ring true.
The local equity market is tipped to continue it’s good run, with ASX futures up around 1% as I write. U.S stocks traded last night, with mixed results. The NASDAQ gained 0.5% while the S&P500 lost 1% and the Dow lost 1.39%.
AUD EXCHANGE RATES:
AUD/USD – 0.6362
AUD/GBP – 0.5074
AUD/EUR – 0.5825
AUD/NZD – 1.0477
AUD/JPY – 68.522
All Ords (XAO) – 5,439
Gold – A$2,688/oz
Silver – A$24.17/oz
WTI – US$28.40 barrel
DATA RELEASES TODAY:
CNY – Trade Balance
ALL – G7 Meetings
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