Market Update – 26th June 2018 – AUD Declines With Equities As Risk Aversion Whips Up Yet Again

I spoke too soon when I said we might be in for a good week on the back of more bullish commodities prices. Unfortunately that theme was exceptionally short lived and markets have again gone into ‘risk-off’ mode as trade tensions flare up yet again. Equities got particularly hammered with the NASDAQ down 2%, while in Europe the German DAX fell nearly 2.5%. We haven’t seen those sorts of falls for a number of weeks. Locally the Aussie dollar is down against the EURO, GBP and USD, but holding up nicely versus the New Zealand Dollar or Kiwi.

Commodities prices were mixed overnight with Iron Ore which is used to make steel down marginally while Zinc which is used to galvanise that steel got smoked for an 8th day straight. Zinc prices have now fallen roughly 11% since the middle of June despite remaining in a supply deficit.

There is no local economic date out today, however U.S CB Consumer Confidence is released at midnight AEST. The figure is expected to remain elevated “at historically strong levels” and “should continue to support solid consumer spending in the near-term.”


AUD/USD – 0.7407

AUD/GBP – 0.5571

AUD/EUR – 0.6321

AUD/NZD – 1.0734

AUD/JPY – 81.350

USD/BTC – $6,236


All Ords (XAO) – 6,308

Gold – A$1707/oz

Silver –  A$22.04/oz

WTI – US$67.92/barrel


USD – CB Consumer Confidence at midnight

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 




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