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.
“It was the best of times, it was the worst of times.” We had it all over the past 24 hours and the only thing right now which is certain is more uncertainty and more volatility; there are simply too many things going on right now to have any semblance of stability. Riots in HK, an escalating (not deescalating) trade war between Trump and China and issues in the Middle East are all issues that until resolved will continue to see-saw markets. Equities, which fell yesterday by 2.5% after falls of in excess of 3% in the U.S on Monday night, look likely to rebound today following a better session overnight. U.S stocks gained around 1.3% aided by comments from White House Chief Economic Adviser Larry Kudlow who said “the U.S. remained committed to more trade talks with Chinese officials in September.” Our local market looks set to open half a percent higher this morning, however that could quickly change depending on what U.S and European stock futures do through the day.
The AUD seems to have settled with AUD/USD more or less unchanged since yesterday morning thanks to a late afternoon boost from the RBA: who at their latest monetary policy meeting kept interest rates on hold at 1.00% while noting that “the outlook for the global economy remains reasonable” and that they’d continue to monitor developments in the labour market – aka jobs growth. More broadly though, AUD/EUR, AUD/GBP and AUD/USD all around decade lows.
Home Loans Data:
Home loans data is out today followed by RBNZ Rate Decision at midday. Expectations are that we’ll have 0.6% growth in mortgages for the month, while the RBNZ is widely tipped to cut their benchmark rate 25 basis points from 1.5% to 1.25%.
AUD EXCHANGE RATES:
AUD/USD – 0.6732
AUD/GBP – 0.5527
AUD/EUR – 0.6002
AUD/NZD – 1.0328
AUD/JPY – 71.633
All Ords (XAO) – 6,546
Gold – A$2,182/oz
Silver – A$24.36/oz
WTI – US$53.37/barrel
DATA RELEASES TODAY:
AUD – Home Loans m/m at 11.30am
NZD – Official Cash Rate at 12.00pm (noon)
Sign up for a Compass account today and access some of the most competitive rates in the business and arguably the best service.
Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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