Compass Global Markets' Blog

Market Update - 18th September 2019 - AUD Unchanged Ahead Of FOMC Meeting

Posted by Patrick Downes on September 18, 2019 at 9:01 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 Unchanged: 

The AUD had a brief correction yesterday but has managed to claw back those losses overnight bringing most AUD crosses back in line with where they were on Monday morning (my last update). AUD/USD seems to have entrenched itself in the 0.68's despite the drone attacks on Saudi Arabia's oil infrastructure, while AUD/EUR and AUD/GBP are locked in the 0.61's and 0.54's respectively. AUD/JPY was the only currency pair to appreciate notably from earlier in the week and is today trading just on the 74 handle on the wholesale market.

Stocks Mixed: 

In the U.S stocks made modest gains with the tech heavy Nasdaq the best performer up 0.4%, while in Europe stocks finished mix. The UK FTSE and German Dax closed lower, while the French CAC and broad Euro Stoxx 50 index posted gains of a quarter percent and 0.08% respectively.

All Eyes On Fed:

All eyes are back on the Fed again with the market pricing in a 25 basis point cut to U.S interest rates from 2.25% to 2.00%. The cut seems to be pretty well priced in and so hard to see much volatility on the cut itself tonight. However, comments from U.S Fed Chairman Powell is where the action will take place, with many investors still unclear on where exactly Powell stand on interest rates, QE and the U.S economy. We all know Trump wants lower rates leading up to elections next year, but we also know Powell is not one to listen to demands from Trump. The FOMC press conference and statement occur after the interest rate decision and that's potentially where we'll some volatility.

AUD EXCHANGE RATES:

AUD/USD – 0.6834

AUD/GBP – 0.5460

AUD/EUR – 0.6169

AUD/NZD – 1.0762

AUD/JPY – 73.900

OTHER MARKETS:

All Ords (XAO) – 6,801

Gold – A$2,187/oz

Silver –  A$26.24/oz

WTI – US$58.65/barrel

DATA RELEASES TODAY:

GBP - CPI y/y at 6.30pm

USD - Federal Funds Rate & FOMC Statement at 4.00am (tomorrow morning)

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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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