Compass Global Markets' Blog

Market Update - 8th May 2020 - AUD Surges As Lifting Of Restrictions Gets Closer

Posted by Patrick Downes on May 8, 2020 at 8:50 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 Surges:

The Aussie Dollar has continued to surge through the week gaining as much as 2% vs. the Greenback and nearly 3% vs. the Great British Pound. The gains are a result of generally more bullish investor sentiment but also better than expected local Covid19 infection numbers which continue to decline quicker than many had anticipated.

Scott Morrison is due to meet his national cabinet today and it's widely expected they'll revise COVID-19 restrictions following consistent low numbers of infections. Expectations are a reduction in restrictions in stages and over perhaps as long as a month or two. However overall the likelihood of eased restrictions is certainly bolstering the AUD's appeal as a global safe haven amongst currencies and economies much harder hit by the virus.

It's therefore not inconceivable that the AUD could rally to as high as 70 before the end of the year if we keep outperforming on containment of Covid19.

The ASX is tipped to open around 0.7% higher after a solid session in the U.S and Europe where stocks gained as much as 1.4%.

AUD EXCHANGE RATES:

AUD/USD – 0.6470

AUD/GBP – 0.5225

AUD/EUR – 0.5970

AUD/NZD – 1.0638

AUD/JPY – 68.866

OTHER MARKETS:

All Ords (XAO) – 5,449

Gold – A$2,637/oz

Silver –  A$23.50/oz

Oil – US$24.70 barrel

DATA RELEASES TODAY:

AUD - RBA Monetary Policy Statement at 11.30am

USD - Non-Farm Employment Change at 10.30pm

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Patrick's Signature-802090-edited.jpg

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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