No economic data was released yesterday or overnight which means markets turned to global macro news for their cues. As a result, Turkey and its slip towards default led markets and led them quite substantially lower. With their proximity to Turkey and given Turkey is a reasonably sized economic power in the region European equities lost as much as 0.75% – with Spain the worst performer and the DAX losing about half a percent. U.S stocks and commodities didn’t fare much better with the DOW down 0.5% while commodities prices copped a further beating – Zinc, Copper and Lead all continued to move lower amid risk aversion.
The Aussie dollar hasn’t avoided the markets wrath down a whopping two cents in a little over two trading days but is conceivably looking a little over sold at current levels. I’m generally optimist when it comes to these kind of things and with global growth and inflation still growing – I’d like to think this is simply a short term aberration and commodities, the Aussie and equities will continue to perform quite well into the near future once we get past all the trade wars, tariffs and sanctions which Trump dishes out like he’s the matre d at a soup kitchen.
NAB Business Confidence is at 11.30am followed by Chinese data around lunch time which should give us some colour on the health of the Chinese economy.
AUD EXCHANGE RATES:
AUD/USD – 0.7252
AUD/GBP – 0.5676
AUD/EUR – 0.6355
AUD/NZD – 1.1035
AUD/JPY – 80.311
USD/BTC – $6,221
All Ords (XAO) – 6,341
Gold – A$1,641/oz
Silver – A$20.62/oz
WTI – US$66.81/barrel
DATA RELEASES TODAY:
AUD – NAB Business Confidence at 11.30am
CNY – Retail Sales & Industrial Production at midday
GBP – Average Earnings Index 3m/y at 6.30pm
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Senior Corporate FX Dealer
Phone Patrick – 0431 278 632