Compass Global Markets' Blog

Market Update - 15th March 2018 - AUD Breaks 0.7900 Briefly Overnight Only To Fall Away

Posted by Patrick Downes on March 15, 2018 at 8:28 AM

The Aussie dollar briefly eclipsed 0.7900 around 11.30pm last night as the latest batch of U.S retail sales and producer prices figures were released to the market, but the momentum didn't last as producer prices increased while retail sales declined - essentially offsetting each other and creating a business as usual scenario for the Aussie dollar. AUD/USD has been stuck in a 0.7700-0.8000 range now for the best part of 6 weeks and again we look for a catalyst for a move out of this range to occur. With no data due out for the rest of this week the next likely catalyst is the U.S FOMC meeting next Thursday morning in which the U.S Federal Reserve will decide to move interest rates higher to 1.75% or keep them at the same level around 1.5%.

Looking at commodities and equities and we still see a picture of volatility as a direct result of Trumps Tariffs, with most markets moving around in pretty choppy fashion. Iron ore, copper and lithium prices moved higher overnight while zinc and nickel lost ground along with U.S equities which finished lower; the Dow Jones was the worst performer down by as much as 1%.

Some tier 2 local economic data is out today in MI inflation expectations and the RBA Bulletin which "contains relevant articles, speeches, statistical tables, and provides detailed analysis of current and future economic conditions from the bank's viewpoint" - thanks ForexFactory.com for that summary.

AUD EXCHANGE RATES:

AUD/USD – 0.7874

AUD/GBP – 0.5639

AUD/EUR – 0.6366

AUD/NZD – 1.0741

AUD/JPY – 83.710

USD/BTC – $8,215

COMMODITIES/EQUITIES: 

All Ords (XAO) – 6,042

Gold – A$1681/oz

Silver –  A$21.00/oz

WTI – US$60.96/barrel

DATA RELEASES TODAY:

AUD - MI Inflation Expectations at 11.00am

AUD - RBA Bulletin 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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