Compass Global Markets' Blog

Market Update - 20th March 2020 - AUD Dives Before RBA Rate Cuts to 0.25%

Posted by Patrick Downes on March 20, 2020 at 8:51 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 Falls: 

The Aussie Dollar had one of those days to forget, losing 300 points in a matter of hours as the RBA went on to cut interest rates to a record low 0.25%. The majority of the falls occurred in the hours before the cut, with the worst fall happening around 12.56pm when the AUD/USD cross fell from 0.5660 to a low of 0.5508 in the space of five minutes. AUD/GBP held up OK yesterday, however similar falls were seen against the Euro and JPY (which is typically classified as a safe haven currency in times of uncertainty).

Many clients have been booking Forward Contracts lately, and I do think that remains the best course of action in this current market and with this increased volatility. AUD/USD while down substantially (10 cents) over the past month may still have further to go. As such prudent risk management for importers means hedging your currency exposures with Forward Contracts.

AUD EXCHANGE RATES:

AUD/USD – 0.5700

AUD/GBP – 0.4957

AUD/EUR – 0.5342

AUD/NZD – 1.0065

AUD/JPY – 63.266

OTHER MARKETS:

All Ords (XAO) – 4,809

Gold – A$2,564/oz

Silver –  A$21.05/oz

WTI – US$25.66 barrel

DATA RELEASES TODAY:

No data

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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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