Compass Global Markets' Blog

Market Update - 23rd March 2020 - ASX Thumped As All Non-Essential Businesses Shutdown

Posted by Patrick Downes on March 23, 2020 at 9:23 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 Holds/ASX Thumped: 

Volatility in the price of financial assets continued last week and into Friday night's session where U.S stocks lost between 3-5% while in Europe stocks made modest gains. Volatility is typically a hall mark of any bear market, however the kind of volatility we've seen over the past month is unlike anything we've seen the the last 50+ years. In fact as I write this, the ASX200 has just opened and gapped lower 9% as news of a total shutdown of all non-essential businesses filters through financial markets. Things are going to be wild this week and I encourage everyone to take a deep breath and remember, this too shall pass, the the price of financial assets will rebound. Overtime.

RBA Supports The AUD:

The RBA last week announced they would support the value of the AUD following a 10 cent fall since March 10th vs. the Greenback. Perhaps too little too late from the RBA, but it seems we might have a floor in place now of around 0.56/0.57 for AUD/USD. If that's the case then it's fantastic for importers who have copped it the hardest lately, but for exporters perhaps this signals it's time to start looking at hedging some of your USD exposures.

AUD EXCHANGE RATES:

AUD/USD – 0.5721

AUD/GBP – 0.4917

AUD/EUR – 0.5354

AUD/NZD – 1.0180

AUD/JPY – 63.411

OTHER MARKETS:

All Ords (XAO) – 4,854

Gold – A$2,613/oz

Silver –  A$21.65/oz

WTI – US$21.57 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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