Market Update – 16th March 2020 – AUD Rises On Fed Interest Rate Cut & QE

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/USD Rises On Fed: 

The Aussie Dollar has surged this morning following news that the U.S Fed has made another surprise cut to rates, taking their official benchmark rate to zero percent (below AU interest rates). Additionally the U.S Fed, led by Jerome Powell, launched another round of QE, this time to the tune of US$700 billion; all in an attempt to soften the impacts of Covid-19 on the U.S economy. This was the second interest cut in two weeks, following another unscheduled emergency meeting on the 4th, where interest rates were cut from 1.75% to 1.25%.

Stock Markets: 

U.S weekend stock futures were pointing towards a fall this morning when markets open, however these QE measures and interest rate cut to ZERO, followed by G7 meetings tonight, might actually result in another boost to equities prices over the next 24 hours. U.S stocks finished 9%+ higher on Friday night. Our local market should move higher today, however it’s really difficult to read as futures markets are not yet open. 10am we’ll see fireworks again – no doubt.


AUD/USD – 0.6233

AUD/GBP – 0.5018

AUD/EUR – 0.5565

AUD/NZD – 1.0170

AUD/JPY – 66.433


All Ords (XAO) – 5,590

Gold – A$2,445/oz

Silver –  A$23.52/oz

WTI – US$33.19 barrel


CNY – Industrial Production y/y at 1.00pm

ALL – G7 Meetings

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 



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