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.
The build up of negative sentiment this week has finally seen investors capitulate and they've done so in quite spectacular fashion. The biggest falls were seen on European Indices where markets lost between 2% and 3%, while the biggest loser was the U.K FTSE which lost 3.23% and continues to be whipsawed by Brexit uncertainty. Comparatively, U.S stocks fared OK, but still managed to lose upwards of 1.5%-1.9% - our local market looks set to follow this lead with Futures suggesting a fall of around 1.8% this morning.
The AUD has held it's ground, not capitulating nor even really moving over the past 24 hours. In fact AUD/EUR and AUD/GBP are within 1 point of yesterday's morning report, while AUD/EUR has edged lower very marginally along with AUD/JPY and AUD/NZD. No economic data is released through today, however we do get U.S Non-Manufacturing PMI numbers around midnight and they could show further weakness in the U.S economy as manufacturing PMI did earlier in the week. This data presents risk more so to equities than the AUD.
AUD EXCHANGE RATES:
AUD/USD – 0.6674
AUD/GBP – 0.5421
AUD/EUR – 0.6086
AUD/NZD – 1.0664
AUD/JPY – 71.555
All Ords (XAO) – 6,753
Gold – A$2,236/oz
Silver – A$26.22/oz
WTI – US$52.48 barrel
DATA RELEASES TODAY:
USD – ISM Non-Manufacturing PMI at midnight
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