Compass Global Markets' Blog

Market Update - 2nd June 2020 - AUD Surges As Protests Erupt Across America

Posted by Patrick Downes on June 2, 2020 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.

AUD moves higher with stocks:

U.S and European stocks mostly gained overnight, while the AUD continued its march higher gaining around 1% over the past 24 hours and briefly eclipsing 0.6800 vs. the Greenback. The AUD has added nearly 200 points vs. the U.S Dollar since Friday evening as protests escalated right across the U.S as a result of the death of George Floyd in Police custody. Things aren't looking great either for the U.S economy with the double whammy of high unemployment and social inequality/unrest coupled with the effects of coronavirus.

The German DAX was the only major index to fall, down around 1.65%.

RBA meeting: 

Locally we have the RBA meeting at 2.30pm this afternoon. The RBA is tipped to keep rates on hold at 0.25% as the impacts of coronavirus start to dissipate somewhat. The number of new cases has been more or less flat for around a month or so with most new cases a result of returning residents or extremely isolated outbreaks as we saw at Cedar Meats. Further restrictions were lifted yesterday in Victoria, and similar restrictions are being lifted right across the country. All of this is pretty bullish for the AUD and the local economy which has weathered the impacts of coronavirus remarkably well. I stand by my call that it's entirely possible Australia avoids the worst of this pandemic.

AUD EXCHANGE RATES:

AUD/USD – 0.6770

AUD/GBP – 0.5413

AUD/EUR – 0.6077

AUD/NZD – 1.0767

AUD/JPY – 72.833

OTHER MARKETS:

All Ords (XAO) – 5,938

Gold – A$2,555/oz

Silver –  A$26.89/oz

Oil – US$35.77 barrel

DATA RELEASES TODAY:

AUD – Cash Rate & RBA Statement at 2.30pm

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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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