Market Update – 20th June 2016 – Aussie Rebounds Ahead Of Brexit Vote Thursday Night

The Aussie dollar has rebounded over the weekend following strong gains across commodities namely iron ore and equities future which point to positive sessions across local equities today and for U.S equities when they open later tonight. Additionally European equities finished up around 1% on Friday evening. The Aussie is trading just above 0.7400 on the wholesale market.

While little data is out this week – which is probably a good thing – we do have the U.K EU membership vote during Thursday evening. The U.K will decide one way or another whether they remain part of the European Union and we will wake up to some wild markets on Friday morning. If the U.K vote to leave the EU then the question will be what this all means for currencies, the U.K and markets in general? It really will be something that we’ve never had to deal with and so trying to deduce an answer is near impossible.

My own opinion, I think the most logical conclusion is that the U.K remain part of the EU, for no other reason than it will be a logistical nightmare figuring out how the U.K detaches from Europe. Let’s wait and see.

DATA RELEASES TODAY:

None

AUD EXCHANGE RATES:

AUD/USD – 0.7416

AUD/GBP – 0.5124

AUD/EUR – 0.6553

AUD/NZD – 1.0491

AUD/JPY – 77.642

***Above rates are indiciative wholesale rates and intended as a quide only***

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Patrick Downes

Senior Corporate FX Dealer

 Compass Markets

Contact Patrick for a quote on 0431 278 632

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