Market Update – 15th May 2019 – AUD Under Sustained Pressure This Week Following Increase In Tariffs

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 Under Pressure:

I was hoping that I could write a report this morning showing a bit of a recovery in the AUD, however that simply isn’t the case and the AUD remains under significant selling pressure as a result of Trump’s increase in tariffs on Chinese imports to the U.S. Officially the AUD/USD exchange rate is near 2015 lows around the 0.6900 level and it really doesn’t look like any recovery is close. A continued Trade War between the U.S and China, a likely rate cut from the RBA along with a change in government could all see sustained pressure on the AUD particularly against the Greenback. AUD/EUR and AUD/GBP have held up OK given that Europe and the U.K have issues of their own.

Wages Growth?

No data released so far this week, however that changes this morning with the release of the latest Wage Price Index. The reading is a quarterly number and shows the ‘change in the price businesses and the government pay for labor, excluding bonuses’. It’s a good indication of whether wages are actually growing in Australia. Expectations are that wages will have grown by about 0.6% in the latest quarter, up from last quarter but still very low on a historical basis.


AUD/USD – 0.6908

AUD/GBP – 0.5344

AUD/EUR – 0.6161

AUD/NZD – 1.0527

AUD/JPY – 75.799


All Ords (XAO) – 6,327

Gold – A$1,869/oz

Silver –  A$21.33/oz

WTI – US$61.44/barrel


AUD – Wage Price Index q/q

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 



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