Market Update – 30th May 2019 – AUD Pretty Stable Despite Big Falls On Equities Markets

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.

European Equities Down:

European equities got belted last night, with falls as much as 1.71% and 1.57% seen on the French CAC and German DAX. US stocks fared a bit better but still finished the session down between 0.6% and 0.9%. Not surprisingly, safe haven assets performed the best; gold finished higher along with bond’s, the USD and JPY, while the AUD was mixed against the majors.

The AUD: 

The Aussie Dollar remains anchored around the 0.6900 level vs. the Greenback, while strong support for AUD/EUR appears to be around 0.6100. AUD/GBP has been declining steadily since October 2016 with brief rallies generally followed by sell-offs. If this theme continues, which I think it might then the lesson to be learnt is that AUD/GBP is attractive to importers on any bounces and hedging has worked very well.

Building & Homes Data: 

A fair bit of building and housing data out this morning with the release of Building Approvals and HIA New Home Sales. Talk on FinTwit (Financial Twitter) and in the business media is that we’ve seen an improvement in clearance rates and some more robust activity in the housing market. However in my opinion it’s still way too early to be calling the end of this current bearish cycle. The main reasons are; one week of data is not a large enough sample, the number of properties going for sale is still near historic lows, and we’ve just had a surprise election win by ScoMo and his team who appear more pro housing. The data in time will prove itself, but right now, we need to way to see if we’re still deep in the woods or at the edge of the forest with light starting to peak through.


AUD/USD – 0.6887

AUD/GBP – 0.5447

AUD/EUR – 0.6182

AUD/NZD – 1.0591

AUD/JPY – 75.506


All Ords (XAO) – 6,536

Gold – A$1,849/oz

Silver –  A$20.85/oz

WTI – US$59.23/barrel


AUD – Building Approvals m/m at 11.30am

AUD – Private Capital Expenditure at 11.30am

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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