Market Update – 16th August 2018 – AUD Remains On Back-foot As Commodities & Stocks Take A Pummelling

Turkish contagion fears roiled markets again overnight with commodities and stocks the biggest losers. Zinc used to galvanise steel took the brunt of the losses falling a mind bending 6.6% overnight while Copper the second most used metal after Iron lost 4% in manic trade and increased fears that the global economy may unravel years of good work. U.S and European stocks fell as much as 1.8%, while Asian indicies fared worse yesterday with the Shenzhen 300 down 2.5%.

The Aussie dollar and commodities have not fared well against a resurgent USD and is now loitering in the low 0.72’s with fears a break below 0.7200 could see us test December 2016 lows around 0.7160 on the wholesale market. If we failed to hold 0.7160 the next level of support would be 0.6828 reached in Jan 2016 at the depths of the commodities bear market.

Ahead today is employment data at 11.30am; the market is expecting no change in the unemployment rate from 5.4% however about 15K new jobs are anticipated to have been created during July.


AUD/USD – 0.7219

AUD/GBP – 0.5680

AUD/EUR – 0.6359

AUD/NZD – 1.1009

AUD/JPY – 79.918

USD/BTC – $6,344


All Ords (XAO) – 6,415

Gold – A$1,624/oz

Silver –  A$19.98/oz

WTI – US$64.36/barrel


AUD – Employment Change & Unemployment Rate at 11.30am

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 




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