U.S and European stocks finished the week mixed with the best performers the Dow Jones in the U.S and FTSE in London. The local ASX 200 finished in the red on Friday, while the Aussie Dollar recovered from lows reached on Wednesday when AUD/USD touched 0.7412 and was threatening to take out the 0.73’s. I’m pleased to report that the support I was expecting the Aussie dollar to find did eventuate and we’re now safely back in the 0.75’s for the time being.
Global currency and equity markets more broadly remain volatile thanks to a number of geopolitical events going on, however things generally look positive with global growth and Chinese growth still on track. The Aussie housing market is the real risk for the Australian economy in my view with price’s seemingly tanking in both Sydney and Melbourne and clearance rates dropping into the 50% bracket in Sydney. A perfect storm of too much debt, tighter regulation and potentially higher interest rates globally are all creating a real downside risk for house prices.
No economic data is out today, so expect a quiet session with the Aussie likely range trading between in the mid 0.75’s.
AUD EXCHANGE RATES:
AUD/USD – 0.7543
AUD/GBP – 0.5568
AUD/EUR – 0.6314
AUD/NZD – 1.0833
AUD/JPY – 82.505
USD/BTC – $8,689
OTHER MARKETS:
All Ords (XAO) – 6,216
Gold – A$1747/oz
Silver – A$22.10/oz
WTI – US$70.56/barrel
DATA RELEASES TODAY:
No data
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Patrick Downes
Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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