Compass Global Markets' Blog

Market Update - 13th March 2020 - AUD/USD Drops 3 Cents Overnight As Stocks Dive

Posted by Patrick Downes on March 13, 2020 at 8:44 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 Sinks With Stocks:

The Aussie Dollar has had one of its worst sessions on record, losing nearly three hundred points, or 3 cents since yesterday morning. The falls were triggered by the worst capitulation in stocks that we've seen since Black Monday 1987. All in all U.S and European stocks fell by between 9-14%, with the Spanish IBEX35 the worst performer. Aussie stocks look set to break records today with a nearly 10% fall priced in by futures markets.

I really wish I could be more upbeat about things but the truth is this coronavirus has now been deemed a pandemic and probably won't be halted until a vaccine is ready. Of course warmer, more humid weather in the northern hemisphere (where the bulk of cases have occurred) should also provide some respite from the viruses spread. China has shown that even this virus can be contained with the right measures, so there is certainly light at the end of the tunnel.

By the end of the year we'll probably look back on this as a buying opportunity for stocks and the AUD, however it would take a brave man or women to jump into the market right now.

PS - for those importers struggling with the AUD down here, please remember we have been here before. In October 2008 AUD/USD slumped to just under 0.60 before recovering over the next few years to a high around 1.10. The same thing occured after the tech wreck in 2001 when AUD/USD fell to under 0.49 before staging a nearly 8 year rally to around 0.98.

AUD EXCHANGE RATES:

AUD/USD – 0.6241

AUD/GBP – 0.4951

AUD/EUR – 0.5582

AUD/NZD – 1.0216

AUD/JPY – 65.375

OTHER MARKETS:

All Ords (XAO) – 5,370

Gold – A$2,531/oz

Silver –  A$25.36/oz

WTI – US$31.32 barrel

DATA RELEASES TODAY:

None

Sign up for a Compass account today and access some of the most competitive rates in the business and arguably the best service.

 

Open Account 

Patrick's Signature-802090-edited.jpg

Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

CompassFB-1

 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.

Topics: Report, Market

Compass Global Markets' Blog

Subscribe to Email Updates

Recent Posts