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.
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
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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Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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All references to prices, amounts and currency are in Australian dollars unless otherwise noted.
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