Market Update – 16th July 2019 – AUD Marks 6th Day Of Gains, RBA Minutes Due & Whats That About Nuclear Energy?

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.

Markets Make Gains:

Stocks, the AUD and commodities all made modest gains overnight, while the best performer in the past week has been the Aussie Dollar which is up for a 6th consecutive session overnight. The market seems to be pricing in a rate cut in the U.S following stubbornly weaker inflation data and Donald Trump’s insistence/bullying of the U.S Federal Reserve that rates are “too high”. Commodity prices including Copper, Zinc, Nickel and Iron Ore are also making good gains as the U.S Dollar weakens in anticipation of a rate cut early next month.

RBA Minutes Due:

RBA Monetary Policy Minutes are due out this morning at 11.30am and should give us some further more detailed insight into the RBA’s thinking re: the rate cut a couple of weeks ago. Stagnant inflation and weaker economic numbers are the likely culprit. Following that we have a bit of UK data out tonight in Average Earnings, along with U.S Core Retail Sales at 10.30pm.

Nuclear Energy Is Back:

For those of you interested in trading the commodities space – Uranium prices have started to move over the past 24 following the resolution of a S232 trade petition from two of America’s Uranium producers who were hoping for quota’s of American produced Uranium. Trump disagreed that a quota was required and instead has asked for a working committee to boost the nuclear energy industry in the U.S. Nuclear energy is making somewhat of a resurgence and we’re starting to see Uranium prices move over 10 year low prices. The last Uranium bull market saw prices grow 10x, while some Uranium stocks saw their share price shoot up over 100 times.

AUD EXCHANGE RATES:

AUD/USD – 0.7009

AUD/GBP – 0.5592

AUD/EUR – 0.6230

AUD/NZD – 1.0447

AUD/JPY – 75.619

OTHER MARKETS:

All Ords (XAO) – 6,746

Gold – A$2,012/oz

Silver –  A$21.82/oz

WTI – US$59.44/barrel

DATA RELEASES TODAY:

AUD – Monetary Policy Meeting Minutes at 11.30am

GBP – Average Earnings Index 3m/y at 6.30pm

USD – Retail Sales m/m at 10.30pm

USD – Fed Chair Powell Speaks 3.00am (tomorrow morning)

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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