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 Mostly Gain:
U.S stocks mostly gained overnight led by the tech sector’s NASDAQ which added close to 1%. The S&P 500 closed 0.19% higher, while the Dow bucked the trend finishing in the red. In Europe stock indices added between half and one percent as economic data came in mixed; French manufacturing and services PMI climbed, while the equivalent data in Germany fell. Interest rates in Europe have been stuck at 0.00% for nearly four years now and the data suggests a few more years of stagnant growth and inflation may keep rates at record lows for much longer. The local ASX is set to open around half a percent higher this morning.
Turning to Australia and the local market had a good session yesterday, while the Aussie Dollar lost some of the gains made in the latter part of last week. AUD/USD has actually had a really good run through October, gaining over 200 points before encountering some selling pressure this week. For the most part we remain in a downtrend which has been in place since early 2018, but if we can break 0.6900 on the charts it may indicate some bullish momentum. Whether we’re in a new trend after that will depend on a lot of things including the equities market, the local economy, Brexit and a trade deal between Trump and China.
No economic data is due out today. Have a great weekend.
AUD EXCHANGE RATES:
AUD/USD – 0.6786
AUD/GBP – 0.5270
AUD/EUR – 0.6106
AUD/NZD – 1.0647
AUD/JPY – 73.745
All Ords (XAO) – 6,796
Gold – A$2,204/oz
Silver – A$26.10/oz
WTI – US$56.07 barrel
DATA RELEASES TODAY:
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Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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