Market Update – 22nd February 2019 – AUD Slips Through The Week But Jobs Numbers Still Strong

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.

Due to travel and work commitments my market reports have been few and far between this week. Apologies about that if you rely on my morning email for your daily FX update.

AUD Slips, Brexit Extension:

The AUD will start the final day of the week around half a percent lower vs. the Greenback and Euro, while the Pound has climbed against the Aussie Dollar as Theresa May is expected to request a three month extension/delay of Brexit. Locally, employment data was released yesterday and showed continued strong employment numbers and an unemployment rate anchored at 5%. Unfortunately though, wages growth remains stagnant for the middle class which continues to drag on the economy and it appears more and more economists are becoming bearish on the Aussie economies prospects to turn things around without the RBA’s helping hand via a number of interest rate cuts. Should they proceed with this course of the action then all the AUD/USD forecasts for 0.65 may well come to fruition. Now is certainly a good time to consider hedging your USD exposures, even if you’ve never done so before.

No Data Out Today:

No economic data is due out today and U.S equities fell by around 0.4% last night. Local stocks are set to open flat this morning.

AUD EXCHANGE RATES:

AUD/USD – 0.7061

AUD/GBP – 0.5407

AUD/EUR – 0.6226

AUD/NZD – 1.0390

AUD/JPY – 78.111

OTHER MARKETS:

All Ords (XAO) – 6,214

Gold – A$1,866/oz

Silver –  A$22.29/oz

WTI – US$56.88/barrel

DATA RELEASES TODAY:

No economic data

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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