Market Update – 2nd February 2018 – AUD Loses Further Ground Against GBP, USD & EUR

The Aussie dollar is lower this morning having lost ground against all the majors overnight. The worst performers again were AUD/GBP and AUD/EUR which both lost around 1%. I talked briefly about the strength of the EUR and GBP yesterday – but the fact that we have growth accelerating along with sustained low interest rates in the UK and Eurozone we’re really starting to see early signs of inflation.

Gold has continued to surge lately as stock markets have become a little jittery – typically Gold is seen as a safe haven asset and tends to make gains when economic tail risks pick up. Additionally a key indicator of market risk the VIX has also spiked over the past few days moving from its recent norm of about 11 all the way up to 14, and while that doesn’t seem like a lot you’re still talking about a nearly 30% spike.

Local building approvals saw their sharpest decline in nearly 15 years with new building approvals slumping by a whopping 20% as the recent Aussie construction boom comes to a close. We also saw the latest commodity prices index from the RBA which saw a baffling drop in export prices, strange considering we have Zinc, Iron Ore, Copper and Coal all at recent highs.

Ahead this evening is U.S employment data, some risks for the Aussie dollar here so for those of you yet to take advantage of the AUD at current levels please do give me a buzz.

AUD EXCHANGE RATES:

AUD/USD – 0.8043

AUD/GBP – 0.5633

AUD/EUR – 0.6426

AUD/NZD – 1.0867

AUD/JPY – 87.876

USD/BTC – $8,986

COMMODITIES: 

Gold – A$1679/oz

Silver –  A$21.46/oz

WTI – US$65.91/barrel

DATA RELEASES TODAY:

USD – Non-Farm Payrolls/Unemployment Rate at 12.30am

***Above rates are indicative wholesale rates and intended as a guide only***

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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