Market Update – 9th May 2018 – AUD Lower As ScoMo Delivers Boring Budget & Trump Withdraws U.S From Nuclear Deal With Iran

ScoMo delivered a pretty dull budget overnight, promising only to reduce taxes today for middle income earners while massively reducing taxes for the very wealthy in about 6-7 years time. The trade off for middle income earners is 500AUD today at the expense of tax revenue which could be invested in hospitals, education and other essential services. A bit rich for a Government who when in opposition only spoke about reducing the deficit, now they are throwing around tax cuts like confetti. The only highlights of the budget in my opinion were more funding for aged care and continued funding of further important infrastructure projects across Australia such as a proposed Airport train link to Tullamarine in Melbourne.

The AUD and market more broadly doesn’t appear to have liked the budget with the Aussie down around half a percent over night. Also dragging on the Aussie dollar is the fact that Donald Trump has decided to pull out of the Iran Nuclear Deal which had been painstakingly put together by the Obama administration and could now fuel further tensions in the middle east.

Ahead today is US PPI at 10.30pm.


AUD/USD – 0.7445

AUD/GBP – 0.5491

AUD/EUR – 0.6272

AUD/NZD – 1.0685

AUD/JPY – 81.177

USD/BTC – $9,262


All Ords (XAO) – 6,196

Gold – A$1767/oz

Silver –  A$22.15/oz

WTI – US$70.12/barrel


USD – PPI at 10.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 




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