Compass Global Markets' Blog

Market Update - 19th September 2019 - Fed Cuts Rates, ABS Employment Numbers Due At 11.30AM

Posted by Patrick Downes on September 19, 2019 at 9:12 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.

Fed Cuts: 

As widely expected the U.S Fed, led by Jerome Powell, chose to cut rates yet again bringing the official federal funds rate back to 2.00%. Fed Chair Powell noted that the reason for the cut in interest rates was to support the growth that is already occurring in the U.S economy and to help offset some of the impacts of Trump's trade war and accompanying investor uncertainty. In a few subtle jabs at Trump's policies, Powell also noted that the slowing growth "in exports and business investment" locally was due almost entirely to Trump's chosen trade policies.

The Aussie Dollar has fallen following the rate cut and is down right across the board. AUD/USD which has been stoic in the 0.68's lately is threatening to break lower, while AUD/EUR and AUD/GBP are also marginally lower.

Local Employment: 

The latest employment numbers and unemployment rate are due out this morning, followed by interest rate decisions in Japan and the U.K. However, the most important data is the ABS employment numbers due at 11.30am. The unemployment rate is tipped to remain unchanged at 5.2% while a little over 15,000 jobs are estimated to have been created last month. A bumper number or poor result could have a meaningful impact on the Aussie Dollar and so clients wishing to avoid risk would be advised to book payments ahead of the result.

AUD EXCHANGE RATES:

AUD/USD – 0.6801

AUD/GBP – 0.5442

AUD/EUR – 0.6159

AUD/NZD – 1.0764

AUD/JPY – 73.704

OTHER MARKETS:

All Ords (XAO) – 6,791

Gold – A$2,186/oz

Silver –  A$25.99/oz

WTI – US$58.06/barrel

DATA RELEASES TODAY:

AUD - Employment Change & Unemployment Rate at 11.30am

GBP - Retail Sales m/m at 6.30pm

GBP - Official Bank Rate & Monetary Policy Summary at 9.00pm

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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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