Market Update – 24th September 2019 – AUD Slides As Lowe Gets Set To Telegraph Next Rate Cut

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 Slides:

Weak investor sentiment on Friday night and through the weekend has pushed the AUD lower with the local currency down against all the major currencies. AUD/USD lost the most ground falling as much as 1% since Thursday afternoon. RBA Governor Lowe speaks this afternoon and is likely to start telegraphing a rate cut at the next RBA meeting on October 1st (two weeks from today). In fact the market is already pricing in an 80% chance of a rate cut on October 1st. The reason for the further cut to interest rates, which would take local interest below 1%, is simply persistent weak economic data right across the board.

Equities Flat:

U.S stocks finished the session flat, while European stocks lost as much as 1.00%, with the French CAC the worst performer down 1.05% at the close of trade.  Looking across markets more broadly and its interesting to note that the Shanghai/Shenzhen 300 and ASX 200 are the best performing markets in over the past year, up 14% and 9% respectively over the past 12 months. In contrast U.S equities are up a measly 1-2% over the same period.

As mentioned above RBA Governor Lowe speaks tonight around 8.00pm while U.S Consumer Confidence is due around midnight AEST.

AUD EXCHANGE RATES:

AUD/USD – 0.6745

AUD/GBP – 0.5416

AUD/EUR – 0.6131

AUD/NZD – 1.0733

AUD/JPY – 72.545

OTHER MARKETS:

All Ords (XAO) – 6,861

Gold – A$2,246/oz

Silver –  A$27.52/oz

WTI – US$58.28/barrel

DATA RELEASES TODAY:

AUD – RBA Gov Lowe Speaks at 7.55pm

USD – CB Consumer Confidence at midnight