Compass Global Markets' Blog

Market Update - 14th April 2020 - AUD Surges As AUS Covid Cases Drop

Posted by Patrick Downes on April 14, 2020 at 9:20 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 Makes Big Gains:

The Aussie dollar has been the major beneficiary of lower domestic Covid19 cases with the local currency adding as much as 400 points since last Monday vs. the Greenback and 300 points vs. the Euro. I mentioned a few weeks back that the bottom might be in for the AUD and I'm inclined to double down on that call given the dramatic fall in the number of domestic Covid19 cases. Australia recorded only 41 cases yesterday down from a high of 460 per day on the 28th of March - a little over two weeks ago. Social distancing, quarantining and generally better hygiene is undoubtedly working and pressure is now building on the Government to loosen some of the restrictions that have been in place since early March. If Australia can get the economy going earlier than other countries we may well again become a safe haven for investment which would support the AUD. The lucky country may still ring true.

The local equity market is tipped to continue it's good run, with ASX futures up around 1% as I write. U.S stocks traded last night, with mixed results. The NASDAQ gained 0.5% while the S&P500 lost 1% and the Dow lost 1.39%.

AUD EXCHANGE RATES:

AUD/USD – 0.6362

AUD/GBP – 0.5074

AUD/EUR – 0.5825

AUD/NZD – 1.0477

AUD/JPY – 68.522

OTHER MARKETS:

All Ords (XAO) – 5,439

Gold – A$2,688/oz

Silver –  A$24.17/oz

WTI – US$28.40 barrel

DATA RELEASES TODAY:

CNY - Trade Balance

ALL - G7 Meetings

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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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