Market Update – 24th October 2018 – Equities Hammered Again, AUD/USD Off Marginally But Maybe Heading Lower Still

There’s been no real tier 1 economic data out this week and the theme continues again today with nothing but a few bits and bobs of manufacturing and services PMI out of Europe tonight – typically not classified as tier 1.

What seemed likely to be a stable, low volatility week on Monday has ended up being anything but low volatility with the equities selling continuing overnight while AUD/USD fell again. Equities were sold off pretty savagely with stocks in Europe and the U.S down as much as 2.17% and 0.7% respectively. Commodities bucked that trend managing to actually make modest gains. It appears commodities prices have been somewhat immune to the sell off in equities perhaps as a result of the vast majority of them requiring much higher prices to incentivize new exploration and production following the better part of a decade of under investment in new copper, zinc and nickel mines.

Overall it seems like the Aussie Dollar’s recent trend could continue so if businesses have a requirement to hedge their FX rates now could be a good time to look at this, particularly given some bearish forecasts for AUD/USD in the mid 0.60’s.


AUD/USD – 0.7054

AUD/GBP – 0.5423

AUD/EUR – 0.6134

AUD/NZD – 1.0773

AUD/JPY – 79.361

USD/BTC – $6,368


All Ords (XAO) – 5,944

Gold – A$1,736/oz

Silver –  A$20.80/oz

WTI – US$66.11/barrel



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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 




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