Market Update – 14th July 2020 – AUD In Holding Pattern Since June, Stocks Performing Well

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 Stable:

Despite fresh lock-downs across Victoria and caution across other states, the AUD has remained reasonably stable throughout. For the better part of a month and a half AUD/USD has traded in a 2 cent range between 0.68 and 0.70 and a similar pattern has emerged for AUD/EUR and AUD/GBP with both trading in reasonably tight ranges since the start of June.

Real unemployment is high across the country, but JobKeeper/Seeker payments have kept businesses afloat and allowed individuals in affected industries (like retail/travel and tourism) to keep picking up a pay check. This has essentially deferred for the time being the worst impacts of Covid19 lock-downs. Markets are obviously still pricing in good outcomes and this is evident by a booming stock market (ASX All Ords back above 6,000) and the Aussie Dollar back at pre-Covid19 levels. I remain cautiously optimistic that the worst is behind us.

Local Stocks:

The local stock market is tipped to open in the red today following the lead from Wall Street which finished flat or lower – the Nasdaq was the worst performer down over 2% as investors took profits on high flying tech stocks.  European stocks performed better up well over 1% across the board. U.S stock futures as they stand right now at 8.33am are showing somewhat of a positive reversal, which may bode well for the local market today.

No economic data is due out today, however we have a bank holiday in France tonight.


AUD/USD – 0.6912

AUD/GBP – 0.5496

AUD/EUR – 0.6087

AUD/NZD – 1.0580

AUD/JPY – 74.200


All Ords (XAO) – 6,089

Gold – A$2,596/oz

Silver –  A$27.52/oz

Oil – US$39.81 barrel


No economic data

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 



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