Compass Global Markets' Blog

Market Update - 8th October 2019 - AUD Still Trading In A Tight Range

Posted by Patrick Downes on October 8, 2019 at 8:33 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.

Bank Holiday Yesterday:

It was a bank holiday right across Australia yesterday, as such all cleared payments over the long weekend will go out first thing this morning.

Overnight in the Northern Hemisphere, U.S and European stock markets opened the week mixed with U.S indices led lower by the S&P 500 which fell 0.45%, while in Europe indices were led higher by the Euro Stoxx 50 and German Dax which gained around 0.70%. Despite the mixed signals our local market looks set to open around 0.35% higher at 10.00am.

What's The AUD Doing? 

Really we've just seen a continuation of light volatility in a tight range for the AUD. In fact AUD/USD has in the past two months traded between around 0.6670 and 0.6890 - 220 points is an unusually tight trading range and it's unlikely to last forever . With the RBA having a bias to cut interest rates unfortunately the reality remains that lower lows are more likely than higher highs. As such importers should be aware and ready to act on any increases in the value of the AUD.

U.S Fed: 

U.S Fed Chair Jerome Powell has another speech tonight, the market has tended to move on his speeches so expect more of the same early tomorrow morning. Topics of discussion will again be interest rates, the economy and the impacts of the never ending trade war with China.

AUD EXCHANGE RATES:

AUD/USD – 0.6700

AUD/GBP – 0.5442

AUD/EUR – 0.6103

AUD/NZD – 1.0669

AUD/JPY – 71.900

OTHER MARKETS:

All Ords (XAO) – 6,686

Gold – A$2,218/oz

Silver –  A$25.90/oz

WTI – US$52.75 barrel

DATA RELEASES TODAY:

USD – Fed Chair Powell Speaks at 4.50am (tomorrow morning)

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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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