Market Update – 9th November 2018 – AUD At Highest Level In Nearly 2 Months

Well, no report from me yesterday, however the big news is that U.S Congress now has some semblance of balance thanks to a mini blue Democratic wave which has given the Democrats control of the House of Reps. Equities and risk assets more broadly took that as a positive sign and we’ve since seen good gains across the board since Wednesday.

The Aussie dollar has also performed quite well with AUD/USD now trading at its highest level since mid September. While this sudden strong move does suggest more gains may be ahead, best not to throw caution to the wind and perhaps look at hedging a portion of your upcoming USD exposures following the two cent bounce, that’s what I’d be doing. Obviously you’ve all got your own strategies in place, however mine has always been to take advantage of gains/surges in the value of the Aussie Dollar and that has served me well!

The U.S Federal Reserve raised rates again overnight to 2.25% in a pretty telegraphed move so we’ve seen little impact on the USD as a result. Equities though finished off about 0.25-0.5% in the U.S which isn’t much surprise – equities markets generally haven’t liked the U.S Feds higher rates.

AUD EXCHANGE RATES:

AUD/USD – 0.7237

AUD/GBP – 0.5524

AUD/EUR – 0.6355

AUD/NZD – 1.0713

AUD/JPY – 82.579

USD/BTC – $6,394

OTHER MARKETS: 

All Ords (XAO) – 6,015

Gold – A$1,685/oz

Silver –  A$19.88/oz

WTI – US$60.84/barrel

DATA RELEASES TODAY:

GBP – Manufacturing Production m/m & GDP at 8.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick – 0431 278 632 

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