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%.
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 EXCHANGE RATES:
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
DATA RELEASES TODAY:
CNY – Industrial Production y/y at 1.00pm
ALL – G7 Meetings
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