Market Update

The AUDUSD crashed lower yesterday, following a White House staffer, Navarro, suggesting trade agreements between US and China had broken down only to see him later retract his comments and Trump come out and reaffirm that they were still intact, rebounding the Ozzy to where it had begun at 0.6930. Overnight the pair hurdled resistance at 0.6935 and 0.6950 to test the 0.6977/80, which remains in tact this morning. In the absence of any local data today the pair will continue to follow headlines and rumours for direction.

The Kiwi has rallied also on confidence that economic recovery is optimistic albeit  around new cases of coronavirus emerging. Bullish signal still holds for the NZDUSD.

Wall Street received a boost with improving economic data and chance of more economic stimulus on the horizon. Tech stocks also continue their winning streak, lifting the Nasdaq. Asia bourses expected to open firmer today.

Gold trades to its highest level since 2012, driven by Central Bank monetary stimulus packages and weaker USD.

Copper prices continue to strengthen as Trump re-assures China-US deals are still in place and stronger than expected economic data bolstered hopes for a quicker recovery.

Oil prices steady and taking a breather after gains earlier in the week.

Market Update

After starting the week with the AUDUSD under pressure in thin opening trading and with AUDEUR selling flows, market depth bettered and the pair crawled back to 0.6830’s. RBA Gov Lowe was the focus initially, suggesting that a lower AUD was preferable but did not consider the currency to be overvalued against the USD. Amongst other comments, he also suggested that low cash rates likely to remain at record lows for years and slow growth to persist for some time. All-in-all, his comments had little impact on the morning market.

Overnight the Ozzy pushed over 0.69-cents again as traders look through the difficulties on the lockdown opening and bet on a forthcoming recovery. The AUD gains were also supported by a softer USD. Buoyant equity prices and commodity gains are likely to temporarily underpin the gains into the Asia session, though any negative headlines are likely to rattle the bulls in light of little significant economic data releases locally.

The Kiwi has opened up a technical bullish signal and eyes off 0.65-cent resistance next.

Wall Street closes higher with a boost from tech stocks.

Gold trades higher as viral pandemic concerns prevail around secondary cases.

Copper remain positive, reinforced by constrained inventories and strong demand from China.

Oil prices rose 2% as tighter crude supplies prevail as lockdown opens up.

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This document is for information purposes only and does not constitute any recommendation or solicitation to any person to enter into any transaction or adopt any trading strategy, nor does it constitute any prediction of likely future movements in exchange rates or prices or any representation that any such future movements will not exceed those shown on any illustration. All exchange rates and figures appearing are for illustrative purposes only. You are advised to make your own independent judgement with respect to any matter contained herein.