Compass Global Markets' Blog

Market Update - 24th September 2019 - AUD Slides As Lowe Gets Set To Telegraph Next Rate Cut

Posted by Patrick Downes on September 24, 2019 at 8:43 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 Slides:

Weak investor sentiment on Friday night and through the weekend has pushed the AUD lower with the local currency down against all the major currencies. AUD/USD lost the most ground falling as much as 1% since Thursday afternoon. RBA Governor Lowe speaks this afternoon and is likely to start telegraphing a rate cut at the next RBA meeting on October 1st (two weeks from today). In fact the market is already pricing in an 80% chance of a rate cut on October 1st. The reason for the further cut to interest rates, which would take local interest below 1%, is simply persistent weak economic data right across the board.

Equities Flat:

U.S stocks finished the session flat, while European stocks lost as much as 1.00%, with the French CAC the worst performer down 1.05% at the close of trade.  Looking across markets more broadly and its interesting to note that the Shanghai/Shenzhen 300 and ASX 200 are the best performing markets in over the past year, up 14% and 9% respectively over the past 12 months. In contrast U.S equities are up a measly 1-2% over the same period.

As mentioned above RBA Governor Lowe speaks tonight around 8.00pm while U.S Consumer Confidence is due around midnight AEST.

AUD EXCHANGE RATES:

AUD/USD – 0.6745

AUD/GBP – 0.5416

AUD/EUR – 0.6131

AUD/NZD – 1.0733

AUD/JPY – 72.545

OTHER MARKETS:

All Ords (XAO) – 6,861

Gold – A$2,246/oz

Silver –  A$27.52/oz

WTI – US$58.28/barrel

DATA RELEASES TODAY:

AUD – RBA Gov Lowe Speaks at 7.55pm

USD - CB Consumer Confidence at midnight

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Patrick Downes

Senior Corporate FX Dealer

Phone Patrick - 0431 278 632 

  Email Patrick: patrick@compassmarkets.com

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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.
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