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.
GBP was again the biggest mover overnight up 2% vs. the Aussie Dollar as the U.K Parliament ruled out a no-deal triggering of Article 50 (aka Brexit). The reject result was a sigh of relief for many across the U.K and certainly also a sigh of relief for financial markets who had sold off the Pound on the slim chance that Parliament would go ahead with a no-deal Brexit.
In other news both U.S and European stocks moved higher in unison with gains around 0.6%-0.7% across the board in the U.S, while in Europe the best performer was the French CAC which rallied 0.69%. The solid moves overnight along with a bit of buoyancy from the latest Brexit vote means our local market should open around 0.6% higher this morning. Base metals moved marginally higher overnight.
More Chinese economic data out today in Industrial Production, Retail Sales and the Unemployment Rate. Data out of China recently has been weaker than expected, so there’s probably more upside than downside risks for the Aussie Dollar on the back of this data given that the worst is probably priced in.
AUD EXCHANGE RATES:
AUD/USD – 0.7061
AUD/GBP – 0.5290
AUD/EUR – 0.6230
AUD/NZD – 1.0310
AUD/JPY – 78.588
All Ords (XAO) – 6,246
Gold – A$1,845/oz
Silver – A$21.78/oz
WTI – US$58.57/barrel
DATA RELEASES TODAY:
AUD – MI Inflation Expectations at 11.00am
CNY – Industrial Production & Retail Sales at 1.00pm
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Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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