Compass Global Markets' Blog

Market Update - 11th February 2019 - AUD Ends Terrible Week Down Nearly 3%, Iron Ore Still On A Tear

Posted by Patrick Downes on February 11, 2019 at 8:50 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 Off Nearly 3% Through The Week:

AUD/USD has continued its slide through the weekend and starts Monday nearly two cents lower than this time last week when AUD/USD was trading a little over 0.7250. It's a similar story for AUD/JPY, AUD/GBP and AUD/EUR which have all also succumbed to selling pressure following last weeks dovish comments from the RBA and generally weaker economic data.

U.S Stocks Finish Week Slightly Lower:

U.S stocks finished Friday's session little changed, while European stocks fell with the German DAX down over 1%. The flat finish in the U.S sees our local index likely to start the morning flat with the ASX 200 hovering just above the 6,070 level - the recent high was around 6,350 back in August. Metals prices followed the same trajectory as the AUD losing ground during the week, with the exception of iron ore which remains on a tear. Chinese businesses head back to the office today after a week long break and it'll certainly be interesting to watch the iron ore futures price as steel mills get back to business. Some forecasts now have iron ore to hit $US100 a tonne following the Vale mine disaster. These sorts of prices would be an absolute boon for our iron ore miners.

No economic data out locally today, however we see a raft of data out of the U.K tonight with the release of GDP and manufacturing numbers. Those with GBP exposures would be wise to book ahead of tonight's releases to avoid risk.

AUD EXCHANGE RATES:

AUD/USD – 0.7061

AUD/GBP – 0.5443

AUD/EUR – 0.6236

AUD/NZD – 1.0479

AUD/JPY – 77.516

OTHER MARKETS:

All Ords (XAO) – 6,136

Gold – A$1,847/oz

Silver –  A$22.25/oz

WTI – US$52.93/barrel

DATA RELEASES TODAY:

GBP - GDP & Manufacturing Production at 8.30pm


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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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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.
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