Market Update – 28th June 2018 – Commodities Perform Better But AUD/USD Still On The Backfoot

Stocks were mixed overnight falling in the U.S and rallying in Europe while commodities staged a small recovery led by Zinc, Iron Ore and a resilient Copper. The Aussie dollar however continued its slow grind lower vs. the Greenback hitting a one year low just above 0.7300 on the inter-bank market. Where to from here for AUD/USD? Well that of course is the million dollar question and depending which bank or economist you speak with you could get any number of views. One scenario is that rising interest rates in the U.S will drag the USD higher as investors chase higher yielding U.S treasury bonds, while the other scenario suggests the AUD could be supported by higher commodities prices and a continually booming growth story in China and other emerging markets. My personal opinion is it’s probably somewhere in-between and I’d not be surprised to see AUD/USD continue to trade through the low to high 0.70’s, buying your USD on any rally and for exporters selling USD on any significant falls.

AUD/EUR and AUD/GBP are more or less unchanged from earlier in the week.

Ahead this evening is Final GDP which is tipped to come in at an annualised run rate of about 2.2%. This would be a bit behind the previous quarter in March where we saw 2.9% annualised growth.

AUD EXCHANGE RATES:

AUD/USD – 0.7340

AUD/GBP – 0.5593

AUD/EUR – 0.6348

AUD/NZD – 1.0793

AUD/JPY – 80.938

USD/BTC – $6,104

OTHER MARKETS: 

All Ords (XAO) – 6,290

Gold – A$1705/oz

Silver –  A$21.86/oz

WTI – US$71.84/barrel

DATA RELEASES TODAY:

USD – Final GDP q/q at 10.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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