Compass Global Markets' Blog

Market Update - 12th December 2017 - AUD Holds Off 74's As Commodities Prices Rise

Posted by Patrick Downes on December 12, 2017 at 8:38 AM

Stocks and commodities rallied overnight in the absence of economic data or noteworthy news. With Zinc and Copper looking like the best performers, while Iron ore is still around US$69 a tonne. Higher grade iron ore (65%Fe) remains at a premium of nearly US$20 a tonne at US$86. Interesting side note, Aussie miner Mt Gibson is set to reopen the high grade iron ore mine Koolan Island around 2019. So for those interested in mining stocks, worth taking a look, particularly if iron ore prices remain elevated.

Not surprisingly the Aussie dollar has a had a boost thanks to the increase in commodities prices overnight and AUD is up right across the board. AUD/USD which looked destined to be trading in the 0.74's today is now safely back in the low 0.75's, however with rising interest rates in the U.S and abroad and stagnant rates here in Australia, it is very hard to be bullish AUD.

AUD EXCHANGE RATES:

AUD/USD – 0.7527

AUD/GBP – 0.5642

AUD/EUR – 0.6396

AUD/NZD – 1.0898

AUD/JPY – 85.464

COMMODITIES: 

Gold – A$165/oz

Silver –  A$20.90/oz

WTI – US$58.02/barrel

DATA RELEASES TODAY:

GBP - CPI at 8.30pm

USD - PPI at 12.30am

***Above rates are indicative wholesale rates and intended as a guide only***

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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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