Compass Global Markets' Blog

Market Update - 11th December 2018 - AUD/GBP Surges As UK Mull Brexit Deal, ASX Hits Two-Year Low

Posted by Patrick Downes on December 11, 2018 at 8:22 AM

AUD/GBP is the biggest mover overnight, with the Pound losing around 1.5% against the Aussie Dollar as politicians in the U.K continue to debate and compromise on a Brexit deal that works for all. Prime Minister Theresa May is by some accounts playing chicken, with the UK set to crash out of the EU on March 29 deal or no deal. The likely scenario though is that a deal will come sometime before this date which benefits both the UK and the EU, that is assured. Brexit with no EU trade deal would be a disaster for the UK and the Pound. Against the other majors the AUD is up marginally, but down vs the NZD.

The other big news yesterday was that the ASX has wiped out two years of gains since the start of September and is now trading at the same level as back in December of 2016, yes, 2016, not 2017. By comparison the U.S Dow Jones index is back at June 2018 levels. To say our equities market is fickle is an understatement; however with the banking royal commission, tech stocks on the nose in the U.S and mining stocks reeling from Trumps incessant trade war with China then it's no surprise that we find ourselves back in time two years. Also a surprise slowing in GDP growth last Wednesday also hasn't helped things.

Ahead today a chance to see how businesses are coping in this environment with NAB business confidence due at 11.30am this morning along with the quarterly house price index which is expected to have tanked further as it has been all year.

AUD EXCHANGE RATES:

AUD/USD – 0.7155

AUD/GBP – 0.5690

AUD/EUR – 0.6297

AUD/NZD – 1.0420

AUD/JPY – 81.10

USD/BTC – $3,375

OTHER MARKETS:

All Ords (XAO) – 5,627

Gold – A$1,731/oz

Silver –  A$20.21/oz

WTI – US$50.92/barrel

DATA RELEASES TODAY:

AUD - House Price Index & NAB Business Confidence at 11.30am

GBP - Average Earnings Index at 8.30pm


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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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Topics: Market, Report

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