Market Update – 30th July 2019 – AUD Under Pressure, Stocks Slip, Commodities Holding Up

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.

Where is the AUD Headed? 

So every importer wants to know where is the AUD headed or put another way how low will AUD/USD go? And the answer to that question is no one really knows. But, if you follow comments from the U.S Federal Reserve then U.S interest rates are probably heading lower while closer to home, economists in Australia suggest further rate cuts from the RBA before the end of the year are also likely. All of this, along with a slowing economy represents the ‘potential’ for a lower AUD over the short to medium term.

Hedging With Forwards:

With that said, the best way to mitigate a lower AUD, is simply via Forward Contracts which help clients to protect the current exchange rate and lock in the rate today for a future date when they know payments are due. This is the most efficient strategy to simply manage future foreign exchange commitments.

Latest Headlines: 

Hong Kong remains in the headlines with protests overnight, while democracy protests over the last few days in Moscow are also seeping out into the media. There seems to be a fair bit of unrest lately around the world and in developing and developed economies alike, but the issues vary. U.S and European stocks fell overnight, while commodities prices were flat and the AUD fell.

AUD EXCHANGE RATES:

AUD/USD – 0.6871

AUD/GBP – 0.5611

AUD/EUR – 0.6160

AUD/NZD – 1.0374

AUD/JPY – 74.791

OTHER MARKETS:

All Ords (XAO) – 6,911

Gold – A$2,065/oz

Silver –  A$23.84/oz

WTI – US$57.14/barrel

DATA RELEASES TODAY:

JPY – Monetary Policy Statement at midday

USD – CB Consumer Confidence at midnight

Sign up for a Compass account today and access some of the most competitive rates in the business and arguably the best service.

 

{{cta(‘b4d1fdf3-9b81-4df4-87c2-23257194f470’)}} 

Patrick's Signature-802090-edited.jpg

Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

  {{cta(’22fd720b-8ddc-4846-85e4-6ab59d459f68′)}}

CompassFB-1

 DISCLOSURE AND DISCLAIMER – GENERAL ADVICE WARNING
The information provided in this report has been prepared without taking into account your particular objectives, financial situation or needs. You should consider whether our products are appropriate for you and read the FSG and PDS which are available on this website.
This report and must not be copied, either in whole or in part, or distributed to any other person.
All references to prices, amounts and currency are in Australian dollars unless otherwise noted.
This report is provided for Australian residents only and is not intended for use by residents of any other country.

Leave a Reply

Your email address will not be published.