Market Update – 18th July 2019 – AUD Dips With Equities, Employment Numbers Out This Morning

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 & Equities Dip:

U.S and European equities dragged global markets lower following a poor session overnight in which the S&P 500 and Dow finished down 0.65% and 0.42% respectively. European stocks didn’t fare any better with the French CAC the worst performer down 0.76%. The so called Aussie, which had been on a 6 day winning streak snapped that with losses yesterday, but AUD/USD is still around 1.5% higher than this time last week. Those who were looking to make payments should consider doing these today, or face potentially lower rates again tomorrow.

Employment Data: 

Aussie employment data is out this morning. Estimates suggest around 9,000 new jobs created (which would be quite a low number) and the unemployment rate unchanged at 5.2%. Actual employment numbers have been rising over the the past 6 months with the odd hiccup, but that hasn’t flowed into the underlying unemployment rate which has actually risen from 4.9% since March to 5.2%. Something just isn’t right when new jobs numbers are in the 20-40k region but the unemployment rate is rising. Either it means participation is dropping or people are getting work, but getting multiple part-time jobs instead of more secure full-time positions. The consecutive 25 basis point cuts in interest rates by the RBA should help support the jobs market and wages growth, however it’s still too early to see if the cuts have had any impact on the data.

UK retail sales are also out tonight following by G7 meetings in Paris, where tariffs, free trade and crypto currencies will be on the agenda.

AUD EXCHANGE RATES:

AUD/USD – 0.6981

AUD/GBP – 0.5606

AUD/EUR – 0.6213

AUD/NZD – 1.0381

AUD/JPY – 75.336

OTHER MARKETS:

All Ords (XAO) – 6,764

Gold – A$2,034/oz

Silver –  A$22.78/oz

WTI – US$56.63/barrel

DATA RELEASES TODAY:

AUD – Employment Change and Unemployment Rate at 11.30am

GBP – Retail Sales m/m at 10.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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