Compass Global Markets' Blog

Market Update - 13th April 2018 - Commodities Get Whacked While AUD Still Holding In 77's

Posted by Patrick Downes on April 13, 2018 at 9:32 AM

Commodity prices got whacked last night with all the major base metals sold off including zinc, copper, nickel and iron ore and all this despite a tempering in the the Trump/China trade debacle. Lithium however bucked the trend managing to post modest gains while the AUD finished very mixed, up vs. the EUR and JPY and down vs. the USD and GBP. Volatility is remaining quite low for the AUD, with the local currency barely moving over the past month, however as is always the case nothing lasts forever and it would certainly be prudent for importers to take advantage of the Aussie dollar with AUD/USD however around 77's on the wholesale market.  Something I read yesterday and is certainly pertinent to this call is that "current levels historically represent good value, and that 0.8000 and above is simply not the norm for the AUD/USD." Call me to discuss hedging solutions for your business, Forward Contracts work brilliantly to lock in margins and guarantee profits for importers and exporters.

No major data out today, but the RBA deliver their Financial Stability Review which is released annually and paints a picture of the stability of our financial system and any risks to that stability. This may impact the Aussie dollar but more so the major banks especially with the ongoing banking royal commission and the fact that they underpin the Australian financial system.

AUD EXCHANGE RATES:

AUD/USD – 0.7753

AUD/GBP – 0.5447

AUD/EUR – 0.6288

AUD/NZD – 1.0509

AUD/JPY – 83.144

USD/BTC – $7,827

OTHER MARKETS: 

All Ords (XAO) – 5,911

Gold – A$1725/oz

Silver –  A$21.27/oz

WTI – US$66.91/barrel

DATA RELEASES TODAY:

AUD - RBA Financial Stability Review at 11.30am

***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: Report, Market

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