Market Update – 1st April 2019 – AUD Holding Around Low 0.70’s, Chinese Data Improving

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.

Chinese Data Improving:

Chinese manufacturing data released over the weekend has shown improvement, supporting the global outlook, which had started to sour last week with falls across most of the major equities markets. As one Chinese economist suggests, it’s essentially showing a ‘stabilisation in the global economy’. In my opinion one data set can’t really do that, you need a series of data, and more will be out today in the Caixin Manufacturing PMI number at 12.45pm. AUD/USD nonetheless continues to be supported around current levels by higher commodities prices and marginally improved Chinese economic data.

Nab Business Confidence:

NAB Business Confidence and HIA New Home Sales figures are due for release this morning, no estimates are provided, however expect New Home Sales to continue to decline while business confidence might be boosted with an election around the corner.

Commodities: 

Commodities prices remain relatively well bid, with Zinc and Iron Ore not too far off 12 month highs amid tight supply and low global stockpiles. The low AUD will continue to support miners bottom lines and should provide for some bumper profit figures when companies report around the middle of the year.

AUD EXCHANGE RATES:

AUD/USD – 0.7085

AUD/GBP – 0.5423

AUD/EUR – 0.6306

AUD/NZD – 1.0402

AUD/JPY – 78.701

OTHER MARKETS:

All Ords (XAO) – 6,261

Gold – A$1,817/oz

Silver –  A$21.27/oz

WTI – US$60.21/barrel

DATA RELEASES TODAY:

AUD – NAB Business Confidence & HIA New Home Sales m/m at 11.30am

CNY – Caixin Manufacturing PMI at 12.45pm

USD – Retail Sales m/m at 11.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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