Market Update – 20th February 2018 – AUD Marginally Higher In Subdued Trading

The Aussie dollar is marginally higher this morning along with U.S equities, while European equities succumbed to some selling pressure and finished the overnight session lower by about half a percent. Continued bank holidays in China have resulted in subdued trading in commodities, specifically metals with iron ore, zinc, nickel and copper flat. But interestingly Iron ore continues to hover around A$100 a tonne a level it’s been bouncing around for nearly 3 months now. As we all know iron ore is a major export and one that impacts greatly the flow of AUD and flows into government coffers. The longer that iron ore remains around these level the longer we can expect to see elevated levels in the AUD vs. the Greenback and other currencies. Therefore those clients who are bullish on the Chinese economy and global growth in general should sit pretty while those who think iron ore prices can’t stay up here may be best to hedge their currency exposures as a fall in iron ore prices will certainly impact the AUD negatively.  Personally I get the feeling global growth is primed to bust out and the metals should perform well as a result – hence AUD bullish.

AUD EXCHANGE RATES:

AUD/USD – 0.7909

AUD/GBP – 0.5649

AUD/EUR – 0.6374

AUD/NZD – 1.0729

AUD/JPY – 84.311

USD/BTC – $11,151

COMMODITIES: 

Gold – A$1702/oz

Silver –  A$21.06/oz

WTI – US$62.35/barrel

DATA RELEASES TODAY:

AUD – Monetary Policy Meeting Minutes at 11.30am

CNY & USD – Bank Holidays in China and the U.S – Payments therefore delayed

***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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