Market Update – 23rd May 2019 – RBA Notes Rate Cut Chance, AUD/EUR Near 10 Year Lows

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.

AUD Struggles: 

After staging a modest comeback earlier in the week, AUD/USD came under pressure again Tuesday as the latest RBA Monetary Policy Minutes showed a bias towards a rate cut in June or July as the Australian economy stubbornly slows. The RBA minutes had an immediate impact on the Aussie Dollar, particularly against the Greenback, sending it lower through Tuesday and Wednesday. AUD/EUR and AUD/GBP while lower have held up far better than AUD/USD which has fallen as a result of a double whammy of weaker Aussie but also stronger USD.

In other markets: U.S stocks dipped around half a percent, while European stocks held their ground overnight. Commodity prices remain mixed with zinc, nickel and copper down, while iron ore continues it’s surge on the back of more Vale mine closures in Brazil. Stand out performers have been FMG and MGX who are both up over 100% this year alone.

Upcoming Data: 

Economic data out today includes manufacturing and services PMI locally followed by a similar set of data out of France and Germany tonight. AUD/EUR could be impacted by this data and is teetering on 10 year lows around the mid 0.6100’s.


AUD/USD – 0.6850

AUD/GBP – 0.5402

AUD/EUR – 0.6136

AUD/NZD – 1.0561

AUD/JPY – 75.605


All Ords (XAO) – 6,598

Gold – A$1,850/oz

Silver –  A$21.00/oz

WTI – US$61.29/barrel


AUD – Flash Services PMI at 11.30am

EUR – German & French Flash Manufacturing PMI at 6.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 



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