Market Update – 3rd September 2018 – Spring Is Here, But AUD Certainly Not Feeling The Spring Vibes

The Aussie Dollar slide has unfortunately continued unabated over the weekend, with falls seen across the board as a result of renewed fears trade tariffs are taking their toll on the global economy’s prospects. European equities and commodities also performed poorly in the last session of trade on Friday evening, while U.S markets finished the week mixed.

Aussie economic data this morning could provide some impetus for an AUD rebound today. Data out includes retail sales, company operating profits and ANZ jobs ads – all out at 11.30am this morning. Expectations are for retail sales growth to remain weak but still positive, with 0.3% growth forecast for the month. Quarterly company operating profits should also remain positive – economists are estimating 1.4% growth in quarterly profits.

A broader look at things and we see the same macro economic factors playing out which include the Trump/China trade war, the U.S Federal Reserves next move on interest rates, weaker commodities prices and generally lower risk sentiment/tolerance at the moment. Some finality with respect to Trump’ incessant call for trade wars should provide a welcome relief to market, but/if when this happens is anyone’s guess.

AUD EXCHANGE RATES:

AUD/USD – 0.7161

AUD/GBP – 0.5531

AUD/EUR – 0.6166

AUD/NZD – 1.0851

AUD/JPY – 79.614

USD/BTC – $7,251

OTHER MARKETS: 

All Ords (XAO) – 6,427

Gold – A$1,669/oz

Silver –  A$20.21/oz

WTI – US$69.72/barrel

DATA RELEASES TODAY:

AUD – Retail Sales and ANZ Job Ads at 11.30am

GBP – Manufacturing PMI at 6.30pm

USD & CAD – Bank Holidays (expect payment delays of one day)