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.
After a brief respite, fear is back and markets are flashing red. The Dow Jones lost 1,000 while the tech heavy NASDAQ closed nearly 4% lower in one of the worst sessions for U.S equities in over a year. European stocks didn’t fare better falling around 4% across the board setting up what’s likely to be awful day for local stocks on the ASX (tipped to open around 3% lower this morning). Gold is having somewhat of a renaissance, up over 34% in the past year.
AUD Under Pressure:
The Aussie Dollar has not been spared from the selling, falling itself by a further half percent against the majors and over 1% against the Japanese Yen which is seen as a safe haven currency in times of uncertainty. AUD/USD is at fresh decade lows as we get closer to another RBA meeting next week in which rates are likely to be cut once again. Another 25 basis point cut next Tuesday would take the Aussie cash rate to half a percent, lower than all of Canada, U.S, NZD and the U.K.
No economic data due out today, all eyes on markets to see if this red can turn to green. A bit of a worrying sell-off, however I’m also seeing data suggesting volumes on equity markets are apparently still low, suggesting this could be another buy the dip opportunity. It would take a brave person though to buy right now.
AUD EXCHANGE RATES:
AUD/USD – 0.6569
AUD/GBP – 0.5074
AUD/EUR – 0.6051
AUD/NZD – 1.0383
AUD/JPY – 72.766
All Ords (XAO) – 7,065
Gold – A$2,513/oz
Silver – A$28.24/oz
WTI – US$51.28 barrel
DATA RELEASES TODAY:
USD – CB Consumer Confidence at 2.00am
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Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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