Market Update – 18th June 2018 – Trump Escalates Trade War With China, Commodities & AUD Lower As A Result

It’s a bank holiday in China today, which means all payments received over the weekend bound for China will be released tomorrow. As such please allow an extra day for payments to be received by your suppliers.

Commodities, stocks and the Aussie Dollar all finished the week in the red with Trump escalating an unwinnable trade war with China. Understandable retaliatory tariffs by China on U.S exports to the tune of about $34 billion rattled markets and saw equities in the U.S off by about 0.2%-0.3%, while Europe fared far worse with the FTSE down as much as 1.7%. Commodities markets also got hit which in turn put a substantial dampener on the Aussie dollars recent good form.

AUD/USD is trading in the low 0.74’s and may well retrace below this level if Trump continues his current path, while AUD/EUR and AUD/GBP have both lost considerable ground over the weekend and start the week at 0.6417 and 0.5604 respectively.

AUD EXCHANGE RATES:

AUD/USD – 0.7441

AUD/GBP – 0.5605

AUD/EUR – 0.6417

AUD/NZD – 1.0725

AUD/JPY – 82.330

USD/BTC – $6,470

OTHER MARKETS: 

All Ords (XAO) – 6,104

Gold – A$1719/oz

Silver –  A$22.26/oz

WTI – US$64.18/barrel

DATA RELEASES TODAY:

No economic data today + Bank Holiday in China

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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