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.
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.
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
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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