Market Update – 29th August 2018 – AUD Holding Around 0.7300, Metals Prices On A Role

The Aussie Dollar vs. the majors is little changed since the start of the week and essentially treading water in a light week for news. Trump appears to be more willing to negotiate on trade following what appears to be a deal with Mexico however details are few and far between, while talks with China and the EU continue. Overall things appear relatively calm and stable at this time but going by the activity over the past year or so, it’s unlikely to stay this way.

U.S & European equities finished the session mixed overnight with stock market futures suggesting the ASX 200 will open marginally lower. Base metal prices lead by Zinc, Copper and Nickel broke higher overnight, cutting through resistance and potentially setting up a rally back to levels seen in June, however this is still playing out but early signs of deescalation in trade wars, a more dovish (on interest rates) U.S Federal Reserve is certainly supportive of global growth and by default metals prices. This should support the AUD and local mining stocks today and perhaps through the week.

HIA New Home Sales data out this morning and while HIA don’t provide an exact release time or forecast of what to expect safe to say housing trends have been pretty poor of late and it’s probably likely to stay that way or get worse as interest rates edge higher and credit growth contracts. Shouldn’t have too much of an impact on the Aussie Dollar. U.S GDP later this evening will though, so keep an eye out for some movements overnight.

AUD EXCHANGE RATES:

AUD/USD – 0.7306

AUD/GBP – 0.5669

AUD/EUR – 0.6242

AUD/NZD – 1.0903

AUD/JPY – 81.265

USD/BTC – $7,043

OTHER MARKETS: 

All Ords (XAO) – 6,413

Gold – A$1,637/oz

Silver –  A$20.08/oz

WTI – US$68.46/barrel

DATA RELEASES TODAY:

AUD – HIA New Home Sales m/m

USD – Prelim 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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