Market Update – 19th October 2018 – AUD Unemployment Rate Drops Again, Commodities Prices Performing Better

Melbourne’s weather forecast today, 29 degrees and Sunny – does it get much better? Probably not, but I guess it depends who you speak to. A little bit like markets and the AUD right now. While a low AUD is great for exporters, it’s certainly not great for importers who are feeling the pinch as margins get squeezed. The good news however is that while AUD/USD has slipped marginally again overnight, AUD/EUR and AUD/GBP moved higher with base metal prices and a surprise lower unemployment rate which came in at 5.00% (vs. previous reading of 5.30%). Commodities prices, specifically metals continue to look like they are in a new hopefully multi year bull market, as such increases in the price of metals such as iron ore, nickel, zinc and uranium should all support our miners and by default also the AUD. It continues to be something I watch closely and so I will continue to periodically update you all on how commodities prices are moving.

U.S and European stocks were sold off again overnight continuing a theme of increased volatility across equities markets. When things settle down is anyone’s guess but U.S mid-term elections next month could see republicans and Donald Trump lose much of their power. Should Democrats flip the house then perhaps we will see a ratcheting down in trade war/tariffs concerns, watch this space.

AUD EXCHANGE RATES:

AUD/USD – 0.7060

AUD/GBP – 0.5414

AUD/EUR – 0.6161

AUD/NZD – 1.0803

AUD/JPY – 79.278

USD/BTC – $6,365

OTHER MARKETS: 

All Ords (XAO) – 6,050

Gold – A$1,726/oz

Silver –  A$20.53/oz

WTI – US$68.70/barrel

DATA RELEASES TODAY:

CNY – GDP at 1.00pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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