Market Update - 14th July 2020 - AUD In Holding Pattern Since June, Stocks Performing Well
AUD Stable:
Despite fresh lock-downs across Victoria and caution across other states, the AUD has remained reasonably stable throughout. For the better part of a month and a half AUD/USD has traded in a 2 cent range between 0.68 and 0.70 and a similar pattern has emerged for AUD/EUR and AUD/GBP with both trading in reasonably tight ranges since the start of June.
Real unemployment is high across the country, but JobKeeper/Seeker payments have kept businesses afloat and allowed individuals in affected industries (like retail/travel and tourism) to keep picking up a pay check. This has essentially deferred for the time being the worst impacts of Covid19 lock-downs. Markets are obviously still pricing in good outcomes and this is evident by a booming stock market (ASX All Ords back above 6,000) and the Aussie Dollar back at pre-Covid19 levels. I remain cautiously optimistic that the worst is behind us.
Local Stocks:
The local stock market is tipped to open in the red today following the lead from Wall Street which finished flat or lower - the Nasdaq was the worst performer down over 2% as investors took profits on high flying tech stocks. European stocks performed better up well over 1% across the board. U.S stock futures as they stand right now at 8.33am are showing somewhat of a positive reversal, which may bode well for the local market today.
No economic data is due out today, however we have a bank holiday in France tonight.
AUD EXCHANGE RATES:
AUD/USD – 0.6912
AUD/GBP – 0.5496
AUD/EUR – 0.6087
AUD/NZD – 1.0580
AUD/JPY – 74.200
OTHER MARKETS:
All Ords (XAO) – 6,089
Gold – A$2,596/oz
Silver – A$27.52/oz
Oil – US$39.81 barrel
DATA RELEASES TODAY:
No economic data
Senior FX Manager
Compass Markets
Contact Patrick for a quote on 0431 278 632.
*Above rates are indicative wholesale rates and intended as a guide only. Commentary above is my opinion and should not be construed as financial advice. I recommend you seek professional advice before doing anything of a financial nature.