Compass Global Markets' Blog

Market Update - 24th August 2016 - AUD/GBP Retraces Lower Again, AUD/USD Holding Above 0.7600 Ahead of Construction Figures

Posted by Patrick Downes on August 24, 2016 at 9:29 AM

AUD/GBP lost another one percent overnight extending losses to nearly 4% since August 16th when the currency pair hit a nearly three year high following Brexit. The GBP was also aided by a boost in equity prices overnight which saw European stocks advance by as much 1.1% while U.S equities were up an average 0.2%. Overall positive sentiment and cheap money is continuing to drive equity markets to dizzying heights, particularly in the U.S with some analysts suggesting U.S equities could be again in bubble territory and due for a correction. I tend to agree.

AUD/USD has done little overnight but does appear to be holding above key support at 0.7600 - over the course of the month AUD/USD has traded mostly between 0.7600 and 0.7750, with 0.7750-ish the highest level in the past 4 months. Make of that what you will.

No data out today again other than some low level Aussie construction work figures. Construction work has been contracting for the most part since early 2014, with the trend likely to continue with this latest reading.

DATA RELEASES TODAY:

No News or Data

AUD EXCHANGE RATES:

AUD/USD – 0.7613

AUD/GBP – 0.5768

AUD/EUR – 0.6734

AUD/NZD – 1.0462

AUD/JPY – 76.335

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

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Patrick Downes

Senior Corporate FX Dealer

Compass Markets

Call Patrick: +61390998459 or +61431278632  Email Patrick: patrick@compassmarkets.com

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