I’ve been crook all weekend with a cold/head cold, so this market update could be brief…but let’s see how we go.
First of all the big movers on Friday and through the weekend were Bitcoin and Oil. Both dropped considerable amounts but for different reasons, with WTI off a whopping $4 a barrel or 7% since Friday morning as booming U.S shale oil production saw the U.S overtake Saudi Arabia and become the worlds number 1 oil producer. Bitcoin – everyone’s favourite crypto-currency… – dropped around 500USD per coin or 11% in the same period for reasons unknown, but took many by surprise. Whether BTC is a buy around 3,500USD a coin is up for debate, but at this stage with very limited practical use I’d suggest steering clear….
Whats the AUD been doing? Well it more or less held ground against the USD and EURO but fell against the GBP as Brexit came closer to reality. AUD/GBP reached a high of 0.5730 last week on Brexit worries, but the GBP swiftly bounced back as the EU endorsed Theresa May’s latest Brexit deal. The British parliament still needs to hold a vote sometime before Christmas to accept or reject the Brexit deal.
In other news equities markets remain jittery along with commodity prices. U.S equities finished lower Friday night, while European equities advanced, the German DAX was the best performer up around 0.5%. Our local index is set to open lower following the U.S lead of Friday night.
No data out today, but we see a raft of speeches from Governors and Assistant Governors at the RBA, ECB and BOE over the next 24 hours.
AUD EXCHANGE RATES:
AUD/USD – 0.7202
AUD/GBP – 0.5603
AUD/EUR – 0.6343
AUD/NZD – 1.0611
AUD/JPY – 81.366
USD/BTC – $3,920
All Ords (XAO) – 5,793
Gold – A$1,692/oz
Silver – A$19.74/oz
WTI – US$50.41/barrel
DATA RELEASES TODAY:
AUD – RBA Gov Lowe Speaks at 9.15am
AUD – RBA Assist Gov Kent Speaks at 2.00pm
EUR – ECB President Draghi Speaks at 1.00am
GBP – BOE Gov Carney Speaks at 5.30am (tomorrow morning)
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Phone Patrick – 0431 278 632