Compass Global Markets' Blog

Market Update - 4th February 2019 - Commodities Prices Continue Cracking Start To 2019

Posted by Patrick Downes on February 4, 2019 at 8:36 AM

Please note that the commentary below is factual information provided to a group of readers as a web blog, and where an opinion is expressed by the author, it is GENERAL ADVICE only.

AUD Unchanged:

While the AUD remains little changed since last Friday, the price of iron ore (our number 1 export) has continued it's stellar run busting through the psychological level of 600 Chinese Yuan or roughly US$90 a tonne. Iron ore has been ripping higher on the double whammy of progressive trade talks between China and the U.S and the recent tragic Vale tailings dam disaster which will put a significant dint in the global supply of iron ore as Vale decommissions 10 of it's 'upstream' tailings dams.

US Jobs Numbers:

The only economic data released over the weekend was Friday nights U.S jobs numbers which beat estimates yet again, coming in at 304K new jobs while (according to The Guardian) also setting a record of 100 consecutive months of job creation. The unemployment rate however bucked the trend unexpectedly rising from 3.9% to 4% in the latest reading. U.S equities markets were mixed with the Nasdaq down a quarter of a percent while the S&P and Dow rose very marginally; European stocks also finished higher.

Metals Prices Continue To Surge:

Our local market is set to open 0.3% higher, while the AUD should continue to get a bit of a boost from higher iron ore and commodities prices more broadly. Many of the metals which performed so poorly during 2018 have started 2019 in much better fashion, with Zinc and Copper up 14% and 7% respectively while iron ore is up 25%.

AUD EXCHANGE RATES:

AUD/USD – 0.7215

AUD/GBP – 0.5509

AUD/EUR – 0.6291

AUD/NZD – 1.0466

AUD/JPY – 79.035

OTHER MARKETS:

All Ords (XAO) – 5,935

Gold – A$1,818/oz

Silver –  A$21.94/oz

WTI – US$55.48/barrel

DATA RELEASES TODAY:

China - Bank Holidays all week (no payments processed)

AUD - Building Approvals m/m & ANZ Job Advertisements m/m at 11.30am


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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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 DISCLOSURE AND DISCLAIMER - GENERAL ADVICE WARNING
The information provided in this report has been prepared without taking into account your particular objectives, financial situation or needs. You should consider whether our products are appropriate for you and read the FSG and PDS which are available on this website.
This report and must not be copied, either in whole or in part, or distributed to any other person.
All references to prices, amounts and currency are in Australian dollars unless otherwise noted.
This report is provided for Australian residents only and is not intended for use by residents of any other country.

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