Market Update – 4th July 2019 – AUD Climbs While Dow Jones Reaches Fresh All Time Highs

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.

AUD Climbs:

Some positive moves overnight with respect to the AUD as all the major Aussie Dollar crosses climbed amid positive sentiment across markets. U.S and European equities rose while the Dow Jones reached all time highs as the U.S Fed looks likely to further stimulate the economy with fresh rate cuts. Further QE or stimulus could also be on the way if Donald Trump gets his way and installs a new U.S Fed Chief who is more inclined to his way of thinking.

Despite RBA Rate Cut:

Earlier in the week you might have seen the RBA cut interest rates by 25 basis points. This is the second consecutive interest rate cut and Aussie 2 year bond yields suggest another rate cut could be forthcoming before the end of the year. Ordinarily a cut in interest rates would see the AUD fall against the majors, however rhetoric out of the U.S that we could see rate cuts there has sort of offset any losses. And surprisingly today, AUD/USD is back above 0.7000.

Retail Sales are due out this morning at 11.30am while the 4th of July Bank Holiday takes place in the U.S tonight.

AUD EXCHANGE RATES:

AUD/USD – 0.7004

AUD/GBP – 0.5560

AUD/EUR – 0.6201

AUD/NZD – 1.0450

AUD/JPY – 75.511

OTHER MARKETS:

All Ords (XAO) – 6,770

Gold – A$2,014/oz

Silver –  A$21.75/oz

WTI – US$57.31/barrel

DATA RELEASES TODAY:

AUD – Retail Sales m/m n at 11.30am

USD – Bank Holiday