Market Update – 27th March 2019 – AUD Gains As Risk Aversion Abates, Brexit 2nd Referendum?

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.

AUD Gains:

The Aussie Dollar moved higher overnight with other risk assets as negative sentiment abated over the likelihood of an economic downturn in the near future. U.S and European stocks posted gains in unison, with the best performers being the S&P 500 in the U.S up 0.72%, while in Europe the French CAC led with a gain of 0.89%. The Aussie Dollar moved higher across the board with the biggest gains made against the Japanese Yen (up nearly 1%) and GBP (up 0.5%). AUD/USD is also back around the 0.7100 level but has really struggled much above here, again anything above 0.7100 on the wholesale market is a gift in my opinion to importers, and should be taken advantage of.

Brexit Second Referendum:

No economic data was released overnight, and again nothing much is due this evening or throughout today. Brexit shenanigans are continuing unabated, with the latest news that UK PM Theresa May cannot continue to negotiate on Brexit as a result of a vote in Parliament. Control is now seemingly back with the Opposition and minor parties with a new referendum or complete cancelling of Article 50 a strong chance following massive protests through England on the weekend.

My bet is a second referendum and a win for the remain camp. Should this occur, expect AUD/GBP to get annihilated, perhaps to the tune of about 100-200 points. I’ll be watching closely.

AUD EXCHANGE RATES:

AUD/USD – 0.7103

AUD/GBP – 0.5370

AUD/EUR – 0.6301

AUD/NZD – 1.0294

AUD/JPY – 78.623

OTHER MARKETS:

All Ords (XAO) – 6,213

Gold – A$1,843/oz

Silver –  A$21.63/oz

WTI – US$60.05/barrel

DATA RELEASES TODAY:

EUR – ECB President Draghi Speaks at 7.00pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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