Market Update – 21st August 2019 – Markets Calm Ahead Of FOMC Meeting Minutes

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.

All Calm…Before The Storm? 

Global markets have entered a welcome period of relative calm this week with very little volatility across asset classes. In fact, the Aussie Dollar has traded in a 50 point range since last Thursday vs the Greenback, while AUD/GBP presents a similar scenario having traded in a tight range of around 80 points since August 8th. The Gold price has also been relatively flat since the start of August after a stellar run in which it’s added nearly 30% since the start of 2019 in AUD terms.

Equities Decline:

U.S and European equities finished last week well and started this week quite well, however last night saw a bit of profit taking and an eventual sell off. The sell off though was not extreme with markets across U.S and Europe only down around half a percent with the outlier being the London FTSE which lost around 0.9% as Brexit concerns continue to gnaw at investor confidence. Our local market right now looks set to open around half a percent lower (ASX200).

All Eyes On Fed At 4am:

With no significant data out today locally all eyes turn to U.S FOMC Meeting Minutes released at 4.00am tomorrow morning. Equities, commodities and risk assets more broadly got slammed following the last FOMC meeting three weeks ago and Jerome Powell copped much of the blame with a rudderless critique of the Feds current strategy. Trump has been in his ear about supporting the economy with cuts and QE and so it will be certainly interesting to see the full detailed FOMC minutes from their last meeting. As I mentioned all eyes are on the Fed at the moment and so we could see a bit of volatility tonight depending on the market reads the minutes. Clients wishing to take a punt on a higher AUD should wait til tomorrow, those wishing to take risk off the table will book FX deals before COB today.

AUD EXCHANGE RATES:

AUD/USD – 0.6746

AUD/GBP – 0.5536

AUD/EUR – 0.6072

AUD/NZD – 1.0534

AUD/JPY – 71.722

OTHER MARKETS:

All Ords (XAO) – 6,627

Gold – A$2,224/oz

Silver –  A$25.33/oz

WTI – US$56.07/barrel

DATA RELEASES TODAY:

USD – FOMC Meeting Minutes at 4.00am (tomorrow morning)

Sign up for a Compass account today and access some of the most competitive rates in the business and arguably the best service.

 

{{cta(‘b4d1fdf3-9b81-4df4-87c2-23257194f470’)}} 

Patrick's Signature-802090-edited.jpg

Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

  {{cta(’22fd720b-8ddc-4846-85e4-6ab59d459f68′)}}

CompassFB-1

 DISCLOSURE AND DISCLAIMER – GENERAL ADVICE WARNING
The information provided in this report has been prepared without taking into account your particular objectives, financial situation or needs. You should consider whether our products are appropriate for you and read the FSG and PDS which are available on this website.
This report and must not be copied, either in whole or in part, or distributed to any other person.
All references to prices, amounts and currency are in Australian dollars unless otherwise noted.
This report is provided for Australian residents only and is not intended for use by residents of any other country.

Leave a Reply

Your email address will not be published.