Compass Global Markets' Blog

Market Update - 16th April 2020 - AUD & Equities Give Back Some Gains, Employment Data Due

Posted by Patrick Downes on April 16, 2020 at 9:16 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.

Equities & AUD Give Back Gains:

Profit taking and a significant contraction in U.S retail sales numbers was the catalyst overnight for a sell off in equities and the AUD. U.S equities lost between 1.5% and 2.2% as retail sales numbers contracted by 8.7% in the month of March; while in Europe stocks were hit harder falling well over 3%. AUD/USD which had been on a stellar run since mid-March has fallen a little over 2% since yesterday afternoon. Overall though AUD/USD remains six cents above March lows, while the other majors are also above recent lows.

Covid Case Numbers AUS:

Across Australia Covid19 new cases have stayed below 50 for a fourth consecutive day while the number of recoveries has continued to steam ahead. All in all when compared to the rest of the world, we've done a spectacular job containing Covid19 and there are now likely fewer than 2,000 active cases across the whole of Australia (mostly in NSW). In addition the fatality rate has been kept to just under 1% (0.97%) in a demonstration of how fantastic our medical system is in Australia.

Employment Data:

Local employment data is due out this morning and we're expecting to see a significant jump in the number of job losses. Expectations are that 33,000 jobs were lost in March while the unemployment rate likely ticked up to 5.4% from 5.1% - this may end up being quite a conservative estimate.

AUD EXCHANGE RATES:

AUD/USD – 0.6281

AUD/GBP – 0.5008

AUD/EUR – 0.5754

AUD/NZD – 1.0505

AUD/JPY – 67.500

OTHER MARKETS:

All Ords (XAO) – 5,523

Gold – A$2,719/oz

Silver –  A$24.50/oz

WTI – US$25.60 barrel

DATA RELEASES TODAY:

AUD - Employment Change & Unemployment Rate at 11.30am

USD - Unemployment Claims at 10.30pm

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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 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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