Compass Global Markets' Blog

Market Update - 9th October 2019 - AUD Under Pressure As U.S Slaps Travel Bans On Chinese Officials

Posted by Patrick Downes on October 9, 2019 at 9:07 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.

Investor Sentiment Cops Hit:

The Aussie Dollar had a mixed session overnight falling against the Greenback and Yen, but gaining vs. the Euro and GBP, following another flare up of trade tensions and weak investor sentiment. Equities had a particularly bad session with almost all major European and U.S indices losing over 1% following reports that the U.S intend to slap  bans on Chinese officials and companies tied to the re-education camps in Xinjiang Province. Our local market is set for a poor start with the ASX200 Futures suggesting as much as a 1% loss on the open.

Fed Chair Speaks: 

In other news, we saw yet another speech from Fed Chairman Jerome Powell who has been speaking almost daily recently. Depending on whether you're a bull or a bear on the U.S economy there was something for everyone as Powell noted that he doesn't see why expansion can't continue, while in the same breath noting the Fed will continue to provide accommodating monetary policies to help stimulate expansion. Powell speaks again tonight along with the release of the latest FOMC Meeting Minutes at 5.00am tomorrow morning, so expect yet more volatility for particularity equities.

Westpac Consumer Sentiment: 

Consumer sentiment data is released this morning at 10.30am and with the AUD under pressure this morning we could be set for further declines if consumer sentiment is particularly poor. The data has been choppy lately, gaining one month only to lose those gains the following - therefore trying to predict consumer sentiment continues to be a frivolous pursuit. The AUD is barely holding on to 0.6700's at the moment and looks set to continue to test previous lows around 0.6670.

AUD EXCHANGE RATES:

AUD/USD – 0.6697

AUD/GBP – 0.5472

AUD/EUR – 0.6109

AUD/NZD – 1.0654

AUD/JPY – 71.725

OTHER MARKETS:

All Ords (XAO) – 6,713

Gold – A$2,237/oz

Silver –  A$26.34/oz

WTI – US$52.53 barrel

DATA RELEASES TODAY:

AUD - Westpac Consumer Sentiment at 10.30am

EUR - Eurogroup Meetings

USD - FOMC Meeting Minutes at 5.00am (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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