Market Update – 28th August 2019 – AUD Whipsawed From Friday To Today, Volatility Is Back

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.

First Report Of Week:

This is my first market update for the week – the result of a trip out to Mildura to visit some horticultural exporters earlier in the week. If you’ve never been out to North West Victoria this time of year it’s definitely worth a visit, fresh crops of wheat and grain and fields of bright yellow canola (aka rapeseed), but the star of the show is the hectare after hectare of almond trees in full bloom, think Japanese Cherry Blossoms on steroids.

AUD Whipsawed:

Anyway, moving back to financial markets & the Aussie Dollar and what we see is a picture of uncertainty, instability and one man wielding ultimate control over the destiny of financial markets. Donald Trump’s trade war comments on Friday night caused markets to sell off including the Aussie Dollar which went on to lose about 1%. Thankfully fresh comments from Trump, whipsawed the AUD and markets back to life Monday and some gains were made, but markets remain volatile.

Growth is still weak in developed markets like the U.S, Europe and Australia, while growth in China has slowed but is still chugging along. Rates are tipped to go lower globally which should support stock markets, but be a drag on currencies like the AUD which is seen as a risk asset, rising when times are good and falling when times are tough.

U.S GDP Due:

No economic data is out today, however we do Preliminary US GDP numbers tomorrow night, followed by Aussie Building Approvals figures on Friday.

AUD EXCHANGE RATES:

AUD/USD – 0.6721

AUD/GBP – 0.5463

AUD/EUR – 0.6053

AUD/NZD – 1.0571

AUD/JPY – 71.090

OTHER MARKETS:

All Ords (XAO) – 6,565

Gold – A$2,284/oz

Silver –  A$26.93/oz

WTI – US$55.49/barrel

DATA RELEASES TODAY:

No data

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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All references to prices, amounts and currency are in Australian dollars unless otherwise noted.
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