Compass Global Markets' Blog

Market Update - 25th September 2019 - AUD Boosted By RBA Comments, Equities Decline

Posted by Patrick Downes on September 25, 2019 at 8:36 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.

RBA Comments Boost Aussie:

The Aussie Dollar has rallied overnight following a speech from RBA Chief Philip Lowe at the Armidale Business Chamber in regional NSW. Mr Lowe outlined in detail the current local and global economic environment we find ourselves in but spent most of his time looking more at the domestic economy. Some comments were mildly bearish, while others were more bullish and it looks like the market has decided to focus on those more bullish comments and the fact he shied away from confirming any further cut to interest rates at the October meeting in two weeks.

In closing he also noted "looking forward, there are some signs that, after a soft patch, the economy has reached a gentle turning point. This is evident in the fact that GDP growth over the first half of this year was stronger than it was over the second half of last year. We are expecting a further modest pick-up in the quarters ahead."

Equities Fall: 

Equities fell overnight along with commodities prices contrasting the gains in the AUD. The NASDAQ was the worst performer down around 1.5%, while the other major U.S and European indices fell between 0.04% and 0.84%. Overall a risk off night for equities. Our local market looks set to open around 1% lower today.

There is no economic data out today.

AUD EXCHANGE RATES:

AUD/USD – 0.6768

AUD/GBP – 0.5410

AUD/EUR – 0.6138

AUD/NZD – 1.0722

AUD/JPY – 72.505

OTHER MARKETS:

All Ords (XAO) – 6,856

Gold – A$2,252/oz

Silver –  A$27.39/oz

WTI – US$56.81/barrel

DATA RELEASES TODAY:

None

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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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