Market Update – 30th May 2018 – Italy Political Woes Drag Down AUD & Equities, While Gold Surges

U.S and European stocks got pummelled overnight while Gold surged as Italy’s political prospects jolted the markets just when things appeared to be settling down. Specifically fears grew on the “prospect that Italy might need a fresh election that could be a referendum on the nation’s inclusion in the euro zone.” Obviously anything relating to Brexit, Grexit or Itexit has in the past jolted markets and caused a surge in volatility and it appears unfinished business has come back to haunt markets once again. On the flip side, the good news is that China continues to expand while U.S earnings seasons has showed strong growth in earnings but with that also growing inflation.

Looking at currencies and we see that the Euro got pummelled on the Italy news which has helped boost AUD/EUR to near 0.6500 or five month highs. Things remain bullish for AUD/EUR and we may yet see further gains here as Italy’s political woes pan out over the next few weeks or even months – these things have a habit of dragging on.

U.S preliminary GDP numbers and preliminary employment numbers are out this evening with the market expecting to see about 186K new jobs created and quarterly GDP running at an estimated 2.3%.


AUD/USD – 0.7505

AUD/GBP – 0.5659

AUD/EUR – 0.6499

AUD/NZD – 1.0873

AUD/JPY – 81.489

USD/BTC – $7,419


All Ords (XAO) – 6,121

Gold – A$1731/oz

Silver –  A$21.83/oz

WTI – US$66.97/barrel


USD – ADP Non-Farm Employment Change at 10.15pm

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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