Market Update – 2nd May 2019 – AUD Under Pressure, U.S Fed Reserve Holds Fire On Rate Move

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 Battling:

I was a bit crook last week and away in the early part of this week hence not too many market update’s recently. But I’m feeling better and I’m back into the swing of things. The AUD however still looks a bit sick with AUD/USD languishing under 0.7000, while AUD/EUR remains in a trading range between 0.6200 and 0.6400 – it’s been hovering between these levels since the start of the year.

U.S Fed On Hold:

In overnight news the U.S Fed hosed down speculation that there’ll be any change to interest rates from their current level of 2.5%, citing solid fundamentals and healthy GDP growth as reasons why rates as should remain steady. Equities viewed that as a negative sliding late in the day. US stocks finished lower around half to one percent while European equities closed higher before the US. Fed remarks, the UK FTSE was the exception down 0.44%. Our local market is expected to open half a percent lower, while the AUD looks under real pressure.

Home sales figures out this morning, followed by UK interest rates tonight.

AUD EXCHANGE RATES:

AUD/USD – 0.6986

AUD/GBP – 0.5344

AUD/EUR – 0.6233

AUD/NZD – 1.0558

AUD/JPY – 77.889

OTHER MARKETS:

All Ords (XAO) – 6,466

Gold – A$1,820/oz

Silver –  A$20.95/oz

WTI – US$63.57/barrel

DATA RELEASES TODAY:

AUD – HIA New Home Sales m/m

GBP – BOE Official Bank Rate at 10.00pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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