Compass Global Markets' Blog

Markets Update - 26th November 2019 - AUD Mixed, Equities Gain On Trade Optimism

Posted by Patrick Downes on November 26, 2019 at 8:34 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 Mixed: 

The Aussie Dollar has started the week mixed, gaining vs. the EURO and JPY but falling vs. the Greenback and Pound. The latest Australian economic data suggests more interest rate cuts from the RBA are likely, which you'd have to think will continue to drag the Aussie Dollar lower over the next 6-12 months. Current consensus forecasts suggest a range of 0.6600-0.7000 over the short to medium terem.

Equities Gain:

U.S and European equities made solid gains overnight suggesting a fair dose of trade deal optimism has been once again intravenously injected into markets. European and U.S stocks gained as much as 0.93% and 1.32% respectively while the Dow Jones broke 28,000 for the second time this year. The final quarter of the year is typically a good quarter for stocks, so another month and a half of gains could see optimism stretch deep into Christmas and New Years.

An ACTUAL trade deal between China and the U.S is starting to be priced in, but it still begs the question what happens to markets post such an event? Will it be a buy the rumour, sell the news event or will markets and the AUD rally into U.S elections next year. A lot to think about, but I suggest continued caution, especially for importers given the bias for a lower AUD.

AUD EXCHANGE RATES:

AUD/USD – 0.6745

AUD/GBP – 0.5221

AUD/EUR – 0.6123

AUD/NZD – 1.0544

AUD/JPY – 73.500

OTHER MARKETS:

All Ords (XAO) – 6,835

Gold – A$2,147/oz

Silver –  A$24.95/oz

WTI – US$57.94 barrel

DATA RELEASES TODAY:

USD - Fed Chair Powell Speaks at 11.00am

AUD - RBA Gov Lowe Speaks at 8.05pm

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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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