Compass Global Markets' Blog

Market Update - 10th February 2020 - AUD/USD Struggling, Equities/Commodities Remain Volatile

Posted by Patrick Downes on February 10, 2020 at 9:14 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.

Equities & AUD Rally:

AUD Struggling:

The Aussie Dollar made inroads vs. most of the majors last week, however AUD/USD continued to struggle with the local currency losing around half a percent vs. the Greenback since last Monday. In all the AUD is down 360 points or 5% vs the USD since January 1st which is it's worst start to the year since 2016. The optimist in me would suggest it bodes well for February, however Chinese coronavirus containment measures are likely to be a drag on global economic activity while recent bush fires across Australia could also hinder growth and economic activity at home, particularly tourism.

Equities & Commodities:

Stocks and commodities have been volatile since the coronavirus first hit mainstream media and Copper which is the bellwether metal has seen its value fall by 10% over the month of March. Other metals have also taken a hit as economists and investors try to quantify the impact of whole cities shut down in Mainland China, particularly those manufacturing hubs right across the country. U.S equities lost around 0.5-1% on Friday night, while European equities fell as much as half a percent. ASX Futures are suggesting a flat start to the week.

No economic data released today, so all eyes will be on China again and any stimulus they may pump into their domestic economy amid current containment measures.

AUD EXCHANGE RATES:

AUD/USD – 0.6638

AUD/GBP – 0.5139

AUD/EUR – 0.6063

AUD/NZD – 1.0381

AUD/JPY – 72.845

OTHER MARKETS:

All Ords (XAO) – 7,121

Gold – A$2,354/oz

Silver –  A$26.53/oz

WTI – US$50.49 barrel

DATA RELEASES TODAY:

No Data

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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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