Market Update – 7th December 2018 – Arrest Leads To Sell-Off In AUD & Risk Assets

The Aussie dollar dipped with commodities and stocks overnight as risk aversion gripped markets yet again following the arrest in Canada of high profile Chinese businesswomen Wanzhou Meng for allegedly breaching U.S sanctions related to Iran. Obviously with markets already on eggshells the arrest raised further doubts that China and the U.S would ever sort out their trade differences. The AUD lost about half a percent while U.S stocks, thanks to a late rally finished about half a percent lower, the Nasdaq has actually made a miraculous recovery to finish half a percent higher at the writing of this report.

Local retail sales delivered yesterday came in bang on expectations at 0.3% which will be welcomed by the retail industry who have had a tough couple of years. U.S non-farm payrolls and the unemployment rate are due tonight around midnight, this can move the market as such clients wishing to avoid risk would be advised to book ahead of tonight’s jobs numbers.

AUD EXCHANGE RATES:

AUD/USD – 0.7204

AUD/GBP – 0.5630

AUD/EUR – 0.6328

AUD/NZD – 1.0481

AUD/JPY – 81.276

USD/BTC – $3,596

OTHER MARKETS:

All Ords (XAO) – 5,736

Gold – A$1,711/oz

Silver –  A$20.00/oz

WTI – US$51.82/barrel

DATA RELEASES TODAY:

USD – Fed Chair Powell Speaks at 10.30am

USD – Non-Farm Employment Change at 12.30am (tomorrow morning)

USD – Unemployment Rate at 12.30pm (tomorrow morning)