Market Update – 8th January 2018 – AUD Gives Importers A Very Happy New Year

Good morning and a very Happy New Year to all and to the Aussie dollar which has screamed past 0.7700 over the past few weeks. I’m back into the full swing of things after a nice semi two-week break (I say ‘semi’ as I never really stop working, such is the life of a full service 24/7 foreign exchange broker). I think even booked a deal on Christmas Day.

So as you may or may not be aware AUD/USD has gone on quite a run over the break with AUD/USD breaking through 0.7800 for the first time since October, while AUD/EUR and AUD/GBP are only marginally higher since my final report late December. This reason why we sometimes see big moves in currency markets over the Christmas/New Year period stems from a lack of liquidity in the market, meaning large one off trades can have a larger than normal impact on the market given the absence of participants.

A quiet week to kick off the working year with only local retail sales due later in the week followed by U.S retail sales and CPI on Friday evening. The U.S equities market has been on an absolute tear over the Christmas break with the DOW breaking through 25,000 for the first time ever and solid retail sales numbers may provide yet further impetus for it to charge higher still. The AUD and local equities have performed well because of stronger commodities prices and the fact that global growth continues to pick up steam.


AUD/USD – 0.7856

AUD/GBP – 0.5789

AUD/EUR – 0.6530

AUD/NZD – 1.0955

AUD/JPY – 88.801


Gold – A$1678/oz

Silver –  A$21.91/oz

WTI – US$61.56/barrel


JPY – Bank Holiday

AUD – Construction Index at 9.30am

***Above rates are indicative wholesale rates and intended as a guide only***

Sign up for a Compass account today and access some of the most competitive rates in the business and arguably the best service.



Patrick's Signature-802090-edited.jpg

Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 




Leave a Reply

Your email address will not be published.