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.
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
All Ords (XAO) – 4,809
Gold – A$2,564/oz
Silver – A$21.05/oz
WTI – US$25.66 barrel
DATA RELEASES TODAY:
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Senior Corporate FX Dealer
Phone Patrick - 0431 278 632
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All references to prices, amounts and currency are in Australian dollars unless otherwise noted.
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