Market Update – 14th May 2018 – AUD Finds Support, While Equity Markets Finish The Week Mixed

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

Sign up for a Compass account today and access some of the most competitive rates in the business and arguably the best service.

 

{{cta(‘b4d1fdf3-9b81-4df4-87c2-23257194f470’)}} 

Patrick's Signature-802090-edited.jpg

Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

  {{cta(’22fd720b-8ddc-4846-85e4-6ab59d459f68′)}}

CompassFB-1

 

Leave a Reply

Your email address will not be published.