European and U.S stocks got belted overnight amid new concerns over the health of the global banking system. Deutsche Bank, one of the largest by book size and one of the most crucial pieces of the global banking puzzle fell a whopping 7-8%. Since this time last year Deustche Bank stock has dropped by two thirds, but speculation is that it will be supported by the German Bundasbank via a bailout if required. Will need to wait and see how this pans out.
The Aussie dollar was actually quite resilient overnight thanks to a strong commodity sector rallying despite the equity sell off and gaining around 0.4% across the board. AUD/USD continues to hover around 0.7600, but is getting closer and closer to a confluence on the charts which suggests a strong break lower or higher could be coming soon. For those of you requiring Forward Cover, now’s probably a good time to look at covering a portion of your exposures to take some risk out of the equation.
DATA RELEASES TODAY:
USD – Consumer Confidence at midnight
AUD EXCHANGE RATES:
AUD/USD – 0.7606
AUD/GBP – 0.5865
AUD/EUR – 0.6755
AUD/NZD – 1.0498
AUD/JPY – 76.413
***Above rates are indicative wholesale rates and intended as a guide only***
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Patrick Downes
Senior Corporate FX Dealer
Compass Markets
Phone Patrick – +61 03 9099 8459
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