Compass Global Markets' Blog

Market Update - 14th July 2020 - AUD In Holding Pattern Since June, Stocks Performing Well

Posted by Patrick Downes on July 14, 2020 at 8:38 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 Stable:

Despite fresh lock-downs across Victoria and caution across other states, the AUD has remained reasonably stable throughout. For the better part of a month and a half AUD/USD has traded in a 2 cent range between 0.68 and 0.70 and a similar pattern has emerged for AUD/EUR and AUD/GBP with both trading in reasonably tight ranges since the start of June.

Real unemployment is high across the country, but JobKeeper/Seeker payments have kept businesses afloat and allowed individuals in affected industries (like retail/travel and tourism) to keep picking up a pay check. This has essentially deferred for the time being the worst impacts of Covid19 lock-downs. Markets are obviously still pricing in good outcomes and this is evident by a booming stock market (ASX All Ords back above 6,000) and the Aussie Dollar back at pre-Covid19 levels. I remain cautiously optimistic that the worst is behind us.

Local Stocks:

The local stock market is tipped to open in the red today following the lead from Wall Street which finished flat or lower - the Nasdaq was the worst performer down over 2% as investors took profits on high flying tech stocks.  European stocks performed better up well over 1% across the board. U.S stock futures as they stand right now at 8.33am are showing somewhat of a positive reversal, which may bode well for the local market today.

No economic data is due out today, however we have a bank holiday in France tonight.

AUD EXCHANGE RATES:

AUD/USD – 0.6912

AUD/GBP – 0.5496

AUD/EUR – 0.6087

AUD/NZD – 1.0580

AUD/JPY – 74.200

OTHER MARKETS:

All Ords (XAO) – 6,089

Gold – A$2,596/oz

Silver –  A$27.52/oz

Oil – US$39.81 barrel

DATA RELEASES TODAY:

No economic 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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