Market Update – 4th December 2018 – AUD Pares Some Gains, U.S Equities Move Higher On Positive Trade News

Overnight the AUD pared gains made yesterday and is off around half a percent vs. the Greenback and Euro while advancing marginally against the Pound. Data released locally yesterday showed that building approvals continue to disappoint with the number of new dwellings approved dropping by 1.5% in the latest month. Housing prices in our most populous city are down a whopping 9.5% since July last year with CoreLogic expecting more of the same over the next 12 months with peak to trough losses around 15%.

Globally though things are looking a little better for equities, the AUD and commodities with Larry Kudlow (White House economic advisor) suggesting that more trade deals with China could be forthcoming. Obviously sorting out/putting to bed these trade disputes will be bullish for the global economy and risk assets such as the AUD. U.S & European equities jumped around 1-2% overnight which has set up for potentially another good day for equities locally. Commodities prices are up across the board.

Ahead today is the official RBA cash rate decision however expect no change to rates as they stand at 1.5%. Again the market and economists will pick through the RBA statement for any clues as to when/if ever rates might start to rise.

AUD EXCHANGE RATES:

AUD/USD – 0.7323

AUD/GBP – 0.5745

AUD/EUR – 0.6448

AUD/NZD – 1.0590

AUD/JPY – 83.235

USD/BTC – $3,809

OTHER MARKETS:

All Ords (XAO) – 5,856

Gold – A$1,674/oz

Silver –  A$19.57/oz

WTI – US$53.19/barrel

DATA RELEASES TODAY:

AUD – RBA Rate Statement & Cash Rate Decision at 2.30pm

GBP – BOE Gov Carney Speaks at 8.15pm

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

 

Leave a Reply

Your email address will not be published.