Market Update – 23rd May 2018 – AUD/USD Back To Its Historic Average In The 0.75’s

I was having a good uninterrupted run publishing my reports each morning, however missed one yesterday which is bound to happen when you work in a service based industry. Thankfully not a great deal happened in the early part of the week as we had public holidays in Canada and throughout Europe. The most important thing – for the vast majority of you – is that AUD/USD has moved higher, which was always bound to happen after such a sustained sell off. 0.75 is the historic average for AUD/USD and that’s smack bang where we are right now.

Trump’s tariff war is over, so that has certainly helped bolster the Aussie dollars appeal as a result of expectations of improved trade which is of course great for our number 1 export (commodities).

A bit of economic news out today with the MI Leading Index at 10.30am followed by Construction Work Done at 11.30am. The MI Leading Index has been exceptionally flat for the most part since 2014, with the index barely ticking above about 0.3% and spending half the time in negative territory over the same period. More recently though it appears growth is slowly filtering back into the economy with two of the four highest readings posted since late 2013 occurring in Jan and March of this year. Construction numbers are likely to be flat once again as the end of the latest property cycle comes to a close.

AUD EXCHANGE RATES:

AUD/USD – 0.7575

AUD/GBP – 0.5637

AUD/EUR – 0.6430

AUD/NZD – 1.0924

AUD/JPY – 84.004

USD/BTC – $8,066

OTHER MARKETS: 

All Ords (XAO) – 6,150

Gold – A$1704/oz

Silver –  A$21.84/oz

WTI – US$72.09/barrel

DATA RELEASES TODAY:

AUD – Construction Work Done q/q at 11.30am

AUD – RBA Gov Lowe Speaks at 6.00pm

GBP – CPI at 6.30pm

USD – FOMC Meeting Minutes at 4.00am

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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