Market Update - 25th May 2020 - AUD Gains Vs. The Pound Ahead Of Holidays In the U.K & U.S

Holidays in the U.S and UK:

Bank holidays in the U.S and U.K tonight mean trade will be thin. The U.K celebrates the Spring Break Holiday while in the U.S, it's Memorial Day. Both U.S and U.K equity markets will be closed for the long weekend however currencies will continue to trade on lighter volume. News flow over the weekend appears to have shifted away from coronavirus and back on to Hong Kong with a flare up in tensions occurring again as a result of a new Chinese security law which is being called a “comprehensive assault” on Hong Kong's rights and freedoms.

AUD News: 

The Aussie Dollar has remained steady versus the Greenback and Euro but added around a half a percent versus the Pound as the U.K continues to struggle to contain new Covid19 cases. The U.K has done a little better than the U.S however poor leadership and populist candidates seems to be both countries Achilles heal at this stage.

Our economy though is expected to dramatically open up over the next month with restrictions slowly being lifted right across the country. All of this is bullish for the AUD and the economy more generally. Australia has kept testing levels high and that's what it giving our leaders more confidence to lift those restrictions put in place in March.

AUD EXCHANGE RATES:

AUD/USD – 0.6508

AUD/GBP – 0.5336

AUD/EUR – 0.5965

AUD/NZD – 1.0669

AUD/JPY – 70.098

OTHER MARKETS:

All Ords (XAO) – 5,608

Gold – A$2,648/oz

Silver – A$26.22/oz

Oil – US$33.08 barrel

DATA RELEASES TODAY:

USD & GBP - Bank Holidays in the U.S and UK

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.