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.
Good morning all – hope you had a lovely weekend. Commodities prices have dipped with equities, while AUD/USD is around 50 points lower since my last report on Thursday morning. The sell off comes on the back of a pretty good run through last week which saw the AUD, commodities and equities all make solid gains.
All Time Highs:
U.S equities hit all time highs late last week surpassing levels seen in October 2018. As many have reported U.S equities have been on a tear since Feb 2009 with hiccups (selloffs) in 2015 and late 2018, however each time investors have ‘bought the dip’ – i.e. bought equities when things have looked oversold. The reason for this probably stems from investors belief that the U.S Federal Reserve will not allow a melt down in U.S stocks as each time over the past 10 years the Fed have applied stimulus via Q.E (quantitative easing) or rate cuts in order to stem the bleeding. Eventually though, and with rates near zero in the U.S and around the world there will simply be not enough firepower (rate cuts) to save the day….Apologies I got sidetracked.
U.S non-farm employment numbers delivered on Friday evening showed jobs growth continuing, while the unemployment rate ticked up marginally to 3.7%. U.S jobs growth has been more or less positive since 2010 with only one bad month since, which occurred in October 2017.
Powell To Speak:
No economic data is released locally this week and not much is expected from abroad except UK GDP numbers on Wednesday night and a speech from Fed Chairman Powell Thursday morning. Powell may address recent comments from Trump about him being unfit to serve as the Chairman of the U.S Federal Reserve (Trump put him there by the way). Other than that we might be expected to have a pretty quiet week.
AUD EXCHANGE RATES:
AUD/USD – 0.6950
AUD/GBP – 0.5542
AUD/EUR – 0.6186
AUD/NZD – 1.0503
AUD/JPY – 75.455
All Ords (XAO) – 6,831
Gold – A$1,997/oz
Silver – A$21.44/oz
WTI – US$57.73/barrel
DATA RELEASES TODAY:
AUD – ANZ Job Advertisements m/m at 11.30am
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Senior Corporate FX Dealer
Phone Patrick – 0431 278 632
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