Market Update – 25th June 2018 – Oil Prices Surge Despite Prodn Increase, AUD Higher With Commodities

The Aussie dollar has made some good gains over the weekend managing to add about 1% vs. the Greenback while AUD/EUR and AUD/GBP made more modest gains. Equities generally moved higher with the exception of the NASDAQ which fell 0.26%. By contrast the rest of the U.S exchanges were up around 0.2%-0.7%, while European equities surged with the FTSE the best performer up nearly 1.7%. Commodities also performed well, led by iron ore and the base metals.

OPEC meetings held over the weekend caused oil prices to surge by as much as $3 a barrel despite a production increase which would ordinarily see oil prices decline. The reason? Well it could be shrinking production in Venezuela but also growing demand for oil around the world….the Financial Times sum it up best – “The uncertainties around these events, and continued instability in the Middle East, only fuels speculation and volatility. Don’t trust anyone who claims to be able to predict the price of oil.”

No economic data out today, however Aussie equities are set to open higher following the lead from Europe and Wall St. The Aussie dollar is looking better so we could be in for a good week – famous last words?

AUD EXCHANGE RATES:

AUD/USD – 0.7437

AUD/GBP – 0.5604

AUD/EUR – 0.6374

AUD/NZD – 1.0752

AUD/JPY – 81.712

USD/BTC – $6,128

OTHER MARKETS: 

All Ords (XAO) – 6,322

Gold – A$1707/oz

Silver –  A$22.14/oz

WTI – US$68.18/barrel

DATA RELEASES TODAY:

No economic data

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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