Equity markets got pummelled overnight thanks mostly to the workings of Drumpf and his Republican party compatriots who for all intents and purposes look like they want to be good captains and go down with the ship. U.S equities were hardest hit with the tech heavy NASDAQ index belted lower to the tune of over 2.5%, while in Europe stock markets fell around 1.5% across the board. Our local market is looking set to open lower by a factor of 1% but this could worsen as the day goes on. Commodities markets managed to avoid the carnage seen on equities which supported our local currency. AUD/USD, which has been lower this month is now trading tentatively around the 0.7400 figure.
With local employment data due out at 11.30am expect further volatility and of course downside risk should we see poorer than expected numbers here. The market has tipped no change to the unemployment rate, but expect very little in way of new jobs created. Later this evening is further risk for AUD/GBP with UK retail sales figures due at 6.30pm.
DATA RELEASES TODAY:
AUD – Employment Data at 11.30am
GBP – Retail Sales at 6.30pm
AUD EXCHANGE RATES:
AUD/USD – 0.7405
AUD/GBP – 0.5700
AUD/EUR – 0.6628
AUD/NZD – 1.0651
AUD/JPY – 83.154
***Above rates are indicative wholesale rates and intended as a guide only***
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Patrick Downes
Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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