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 & Stocks Continue Rally:
The Aussie Dollar has continued to bounce off lows posted last week when AUD/USD hit 0.5510 and looks set to make further gains today following another solid session for financial markets in the U.S and Europe overnight. U.S stocks added another 5-6% backing up the gains made earlier in the week.
The AUD is still around 5 to 6 cents off the highs of earlier this month, however any rally is a good rally in my opinion and in this particular market. I tend to think the prudent thing to is to continue to take advantage of ANY strength in the AUD, as there is likely still further pain ahead for financial markets and the AUD. It’s quite unlikely that the bear market for the AUD and stocks is over.
G20 meetings take place this evening/today and will no doubt again have a focus on beating #Covid19 at all costs. Meeting likely held via conference call, but perhaps some further positive news likely to flow from this which could further support a bounce in the AUD. Regardless, best risk management is to take advantage of the AUD while it’s 5 cents above lows seen 2 weeks ago.
AUD EXCHANGE RATES:
AUD/USD – 0.6009
AUD/GBP – 0.5442
AUD/EUR – 0.4933
AUD/NZD – 1.0127
AUD/JPY – 65.778
All Ords (XAO) – 5,135
Gold – A$2,689/oz
Silver – A$23.75/oz
WTI – US$24.03 barrel
DATA RELEASES TODAY:
All – G20 Meetings
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