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Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

Westpac announcement dragged the Aussie lower

Published August 30, 2018

Author: Dennis Li

We saw the AUD/USD down by more than 40 points yesterday afternoon very soon after Westpac announced a lift in its variable home loan rates weighing on domestic confidence and it fell further with a stronger greenback overnight coupled with a decline in emerging markets economic outlook. It did bounce back to its key support of 0.7300 but looks under increasing pressure. Meanwhile the AUDGBP fell by 1.70% overnight suffering its biggest one-day drop in nearly one year after the EU made favourable offerings to the UK around Brexit. The AUDEUR also lost 0.5% in a data free night.

  • Canada said an agreement to update the 24-year-old NAFTA is possible by a Friday deadline but also confirmed that there would be hard work to resolve specific issues as talks with the US entered into the second day.
  • US stock markets extended their rally on Wednesday with the S&P 500 and the Nasdaq continued to be supported by technology companies hitting record highs for the fourth straight session.
  • The US Q2 GDP came out a bit stronger than initially thought, putting the economy on track to hit the Trump administration’s goal of 3% annual growth.
  • According to EU chief Brexit negotiator Michael Barnier on Wednesday, the EU is prepared to offer Britain an unprecedentedly close relationship after its break-up with the bloc but would not allow anything that weakened the body’s single market.
  • According to Australian foreign ministry officials, the leaders of Indonesia and Australia hope to announce on Friday an economic partnership pact aiming to boost the trade relationship between the two countries.