Compass Global Markets' Blog

Market Update - 18th December 2018 - Equities, Oil & AUD Move Lower As Traders Mull Fed Move

Posted by Patrick Downes on December 18, 2018 at 8:23 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.

No economic data out overnight, however U.S retail sales numbers were released Friday evening and came in bang on estimates at 0.2% for the month. All action and eyes though seem to be on the U.S Federal Reserve and their rate announcement early Thursday morning. Surveyed economists predict the Fed will continue to hike rates regardless of the recent selloff in U.S and global equities and despite Donald Trump's objections. If the Fed move again, U.S interest rates will be at 2.5% on Thursday morning, 1% higher than the RBA set interest rate here.

Markets sold off overnight along with commodities led by oil and the AUD as traders worry about the likely impact a further rate hike from the Fed might have on U.S growth and the global economy more broadly. We still don't know if this is a fully fledged equities bear market, but it is starting to look like it. The positives are that global growth is still picking up and interest rates remain low from a historical perspective. We really are living through interesting times.

RBA monetary policy minutes are due out this morning at 11.30am and will be read thoroughly for an indication on the RBA's next move in interest rates - expect volatility around this time.

AUD EXCHANGE RATES:

AUD/USD – 0.7144

AUD/GBP – 0.5647

AUD/EUR – 0.6280

AUD/NZD – 1.0510

AUD/JPY – 80.637

USD/BTC – $3,512

OTHER MARKETS:

All Ords (XAO) – 5,732

Gold – A$1,737/oz

Silver –  A$20.44/oz

WTI – US$49.50/barrel

DATA RELEASES TODAY:

AUD - Monetary Policy Meeting Minutes at 11.30am


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