Market Update – 8th May 2018 – AUD/USD Reasonably Stable Ahead Of ScoMo 2018 Budget Papers

The Hon Scott Morrison aka ScoMo delivers the 2018 Budget this evening and I have to admit I find this time of year reasonably exciting. Why? Well to borrow the immortal words of Forrest Gump the Annual Budget Papers are just “like a box of chocolates…you never know what you’re gonna get.” And that’s precisely what to expect tonight.

In anticipation of to tonight’s Budget Papers the Aussie dollar has fallen marginally against the Greenback and Pound but has pushed tentatively closer to 0.6300 vs. the Euro. Stocks in the U.S and Europe pushed higher while oil and gold continued to make gains. Data released yesterday locally showed NAB Business Confidence improved, while ANZ Jobs Ads data showed a further contraction in the number of ads listed on websites and newspapers across Australia. Having recently been hiring it’s clear that there are simply not enough jobs going around for the candidates currently in the market, which suggests quite a bit of slack in the economy.

Ahead this morning is retail sales figures followed by Chinese Trade Balance numbers around lunch time. U.S Fed Chairman Powell also speaks tonight around 5.15pm AEST and despite only being new on the job does have a tendency to move markets with his comments.

AUD EXCHANGE RATES:

AUD/USD – 0.7513

AUD/GBP – 0.5539

AUD/EUR – 0.6300

AUD/NZD – 1.0705

AUD/JPY – 81.971

USD/BTC – $9,258

OTHER MARKETS: 

All Ords (XAO) – 6,175

Gold – A$1748/oz

Silver –  A$21.94/oz

WTI – US$70.05/barrel

DATA RELEASES TODAY:

AUD – Retail Sales m/m at 11.30am

CNY – Trade Balance Figures around lunchtime

USD – Fed Chair Powell Speaks at 5.15pm

AUD – Annual Budget Release at 7.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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