Market Update – 24th June 2019 – All The Talk Is About QE & G20 Summit In Japan This Week

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.

Stocks Slip:

U.S and European equities retreated Friday night but not by too much as markets cooled a little following the volatility of last week and the ups and downs of Geo-politics. The U.S looks set to slap further sanctions on their nemesis Iran following a tanker explosion and U.S drone shot down, while Trump and Xi will try to hammer out a trade deal at G20 Meetings kicking off on Friday morning in Japan.

QE In Australia?

In Australia all the talk is about lower interest rates and the potential for quantitative easing (or QE as it has become known). Essentially what QE is, is broad based support from the RBA (via lower interest rates and bond buying) to lower borrowing rates in an attempt to stimulate the economy, build wages growth and get the unemployment rate dropping again. Whether this is good or bad for the economy over the longer term is best left to high flying economists to discuss but what QE would essentially do is weaken our local currency (the AUD) but strengthen our equity market (the ASX). Will continue to monitor this, but if QE becomes a reality in Australia then I’ll be sure to keep writing about it.

No economic data is released today however local equities should open higher this morning.

AUD EXCHANGE RATES:

AUD/USD – 0.6904

AUD/GBP – 0.5408

AUD/EUR – 0.6064

AUD/NZD – 1.0490

AUD/JPY – 74.108

OTHER MARKETS:

All Ords (XAO) – 6,734

Gold – A$2,026/oz

Silver –  A$22.20/oz

WTI – US$57.76/barrel

DATA RELEASES TODAY:

No data

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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