Compass Global Markets' Blog

Market Update - 7th July 2016 - Tale of Two Markets With Bears in Europe & Bulls in the U.S

Posted by Patrick Downes on July 7, 2016 at 9:31 AM

As I write the Aussie dollar is hovering around 0.7510 vs. the Greenback while the biggest gains have been made against the Sterling which slumped again overnight. AUD/GBP at 0.5800 is now at levels not seen since 2013 when the European debt crisis was in full swing and markets over there were in real turmoil, and it looks likes those times are returning too with the Euro falling in kind, while European equities slumped as much as 1.8%.

U.S equities however bucked the trend and pushed ahead helping to buoy commodity markets including iron ore as well as our local equity futures which look set for a nice rebound today (up 0.5%).

U.S preliminary jobs numbers otherwise known as ADP non-farms are out later this evening with estimates suggesting a gain of about 160K new jobs. That's about on trend with what we've seen out of the U.S over the past few months and so shouldn't surprise markets too much if it's around these levels. Of course the more official data is out tomorrow night in the form of government Non-Farm Employment data and the unemployment rate - but ADP usually provide a pretty strong indication of what to expect with the official government data.

DATA RELEASES TODAY:

GBP - Manufacturing Production at 6.30pm

USD - ADP Non-Farm Employment at 10.15pm

AUD EXCHANGE RATES:

AUD/USD – 0.7512

AUD/GBP – 0.5823

AUD/EUR – 0.6769

AUD/NZD – 1.0542

AUD/JPY – 75.972

***Above rates are indiciative wholesale rates and intended as a quide only***

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Patrick Downes

Senior Corporate FX Dealer

 Compass Markets

Contact Patrick for a quote on 0431 278 632

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