Market Update – 5th February 2019 – AUD Flat Despite Poor Building Approvals, RBA Meet At 2.30PM

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/USD Down Marginally, Others Flat:

Down against the Greenback and flat against the other majors sums up the Aussie dollars movements overnight with most of the action occurring in the morning with the release of another set of shockingly poor building approvals data. We saw an 8.4% decline in the headline figure month on month, while comparing December 2018 with December 2017 and we see a more than 20% decline in the number of houses/units approved for construction. It’s a further nail into an already struggling housing market, but it’s starkly obvious that investors have completely deserted the housing market after an exceptional run. Eventually the music was going to stop and that has well and truly occurred.

U.S equities and metals prices performed well again overnight with the local market set to follow that lead with Futures markets suggesting the ASX200 will start the morning session up 0.75%. China remains on holidays for the remainder of this week so payments into China will continue to be delayed.

Retail Sales For December Due:

More important local economic data is due out today with retail sales and trade balance numbers at 11.30am, followed by the RBA rate decision at 2.30pm. Retail sales numbers released today are for the all important December Christmas period and so will be watched closely by the RBA before they decide on interest rates. No one really knows what the RBA is thinking right now, however we should have a clearer picture this afternoon when they hold rates and provide their accompanying rate statement.


AUD/USD – 0.7195

AUD/GBP – 0.5510

AUD/EUR – 0.6290

AUD/NZD – 1.0462

AUD/JPY – 79.136


All Ords (XAO) – 5,963

Gold – A$1,816/oz

Silver –  A$21.96/oz

WTI – US$54.90/barrel


China – Bank Holidays all week (no payments processed)

AUD – Retail Sales m/m and Trade Balance at 11.30am

AUD – RBA Rate Statement & Cash Rate at 2.30pm

USD – ISM Non-Manufacturing PMI at 2.00am (tomorrow morning)

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 



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