Market Update – 21st June 2018 – AUD/USD Declines Below 0.7400 For First Time Since June 2017

As I suspected could be the case in Tuesday’s morning report (Market-Update-19th-June-2018) the AUD has most certainly tested the 0.7400 handle breaking below for the first time in 2018, and hitting it’s lowest point since June 2 2017. Trade war fears, higher U.S interest rates and general market weakness is the main culprit for the sell off in risk assets: which includes the AUD, Commodities & Equities. The chart of AUD/USD certainly looks ugly since the declines began in Feb, but I suppose the one positive is that commodities have rallied over night and growth in China and India continues unabated. Additionally this time last year when AUD/USD hit 0.7370 we went on a sustained rally to be trading back at 0.8000 by the end of July.

Moral of the story? The Aussie Dollar is notoriously difficult to forecast with any accuracy and your bet about the AUD’s next move is probably as good as mine, as such the key thing for both importers and exporters is to always monitor those costing levels and be sure to hedge when the opportunity arises to lock in Forward Contracts and by default your profits.

AUD EXCHANGE RATES:

AUD/USD – 0.7366

AUD/GBP – 0.5589

AUD/EUR – 0.6363

AUD/NZD – 1.0734

AUD/JPY – 81.287

USD/BTC – $6,692

OTHER MARKETS: 

All Ords (XAO) – 6,274

Gold – A$1720/oz

Silver –  A$22.10/oz

WTI – US$65.37/barrel

DATA RELEASES TODAY:

GBP – Bank of England MPC Official Bank Rate Votes at 9.00pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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