Market Update – 28th April 2020 – AUD & Stocks Continue Their Climb

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 Steams Ahead:

The AUD has pushed higher again overnight taking it to its highest level vs. the Greenback since the rout began in early March. All in all – AUD/USD has gained nearly 1,000 points (or 10 cents) from the low we saw on March 19 when the AUD was whipsawed back and forth on #Covid19 panic and frantic central bank rate cutting and stimulus. AUD/GBP has also recovered and is now back to early Feb levels, while AUD/EUR is back to where we were at the start of March. Overall it’s been quite a V shaped recovery with a massive selloff followed by a massive surge.

With restrictions being lifted around the country and new cases remaining low, the hope is that the AUD can continue its good run and kick on or at minimum consolidate the gains we’ve made over the past month. For all intents and purposes the AUD may well become the cleanest shirt in the dirty laundry especially if hap-hazard efforts in Europe and the U.S remain so.

U.S Stocks Post Gains:

U.S and European stocks posted solid gains overnight with the best performers being the Dow in the U.S and German Dax in Europe which were up around 1.5 and 3% respectively. Aussie equities had a good afternoon yesterday and we’ll be hoping to see some further solid gains posted today on the back of this good session in Europe and the U.S. At the moment ASX200 futures are trading up 0.3%.

AUD EXCHANGE RATES:

AUD/USD – 0.6256

AUD/GBP – 0.5080

AUD/EUR – 0.5759

AUD/NZD – 1.0510

AUD/JPY – 67.461

OTHER MARKETS:

All Ords (XAO) – 5,388

Gold – A$2,651/oz

Silver –  A$23.49/oz

Oil – US$14.28 barrel

DATA RELEASES TODAY:

No Data