Compass Global Markets' Blog

Market Update - 27th September 2016 - Aussie Dollar Holding Above 0.7600 Despite Global Equity Sell Off

Posted by Patrick Downes on September 27, 2016 at 8:38 AM

European and U.S stocks got belted overnight amid new concerns over the health of the global banking system. Deutsche Bank, one of the largest by book size and one of the most crucial pieces of the global banking puzzle fell a whopping 7-8%. Since this time last year Deustche Bank stock has dropped by two thirds, but speculation is that it will be supported by the German Bundasbank via a bailout if required. Will need to wait and see how this pans out.

The Aussie dollar was actually quite resilient overnight thanks to a strong commodity sector rallying despite the equity sell off and gaining around 0.4% across the board. AUD/USD continues to hover around 0.7600, but is getting closer and closer to a confluence on the charts which suggests a strong break lower or higher could be coming soon. For those of you requiring Forward Cover, now's probably a good time to look at covering a portion of your exposures to take some risk out of the equation.

DATA RELEASES TODAY:

USD - Consumer Confidence at midnight

AUD EXCHANGE RATES:

AUD/USD – 0.7606

AUD/GBP – 0.5865

AUD/EUR – 0.6755

AUD/NZD – 1.0498

AUD/JPY – 76.413

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

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Patrick Downes

Senior Corporate FX Dealer

Compass Markets

Phone Patrick - +61 03 9099 8459

  Email Patrick: patrick@compassmarkets.com

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