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.
Oil Prices Go Negative:
Yes, you read that correctly. For a period this week WTI (U.S produced oil) had negative prices, meaning U.S oil producers were in fact paying oil traders to take their oil away. The reason for this? Covid19 and far less demand for oil products, along with oil storage around the country at full capacity meaning their is literally no where for the oil to go. The price of U.S oil has more recently stabilised just above zero, but it points to a real issue the U.S has with over production of oil.
What's The AUD Doing?
The AUD is holding up very well - AUD/USD is in a consolidation pattern between 0.6250 and 0.6400 however a break out one way or the other I think is likely in the coming weeks. Which way? I don't know. But if I had to bet on it'd be a move higher. AUD/EUR and AUD/GBP also holding nicely, while AUD/JPY remains in the doldrums around 67.00.
Local Employment Data Today:
Aussie employment data is due out at 11.30am this morning. The release is a an interim release of sorts to take into account the impacts of Covid19. There is no reliable forecast and none is given as such we could see a reasonably increased degree of AUD volatility around the release at 11.30am.
AUD EXCHANGE RATES:
AUD/USD – 0.6256
AUD/GBP – 0.5080
AUD/EUR – 0.5759
AUD/NZD – 1.0510
AUD/JPY – 67.461
All Ords (XAO) – 5,278
Gold – A$2,684/oz
Silver – A$23.72/oz
Crude Oil – US$13.77 barrel
DATA RELEASES TODAY:
AUD – Retail Sales m/m at 11.30am
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