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Market Update

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

AUD treading water

Published December 18, 2018

by Nicholas Cork

A messy session overnight as risk indicators slowly tick higher and investors flee for the exits, their hand forced as equity markets continue to fall further into ‘corrective’ territory, and  the outlook for 2019 is not quite so clear as it was a month ago.  The USD eased off its one year plus highs as investors switched into safe-haven currencies YEN and CHF, and the USD weakness was aided by worse than expected US manufacturing data.  Having said that, the AUD was mostly sidelined in the last 24 hours as it hibernated within a 20 point range above its crucial 0.7150 support,  but AUDCrosses are mostly lower to start today’s session.

Impending events for the AUD and NZD are this afternoon’s release of the RBA minutes, and the Global Dairy Auction tonight. The market is building anticipation ahead of  the US FOMC announcement this week, with even Mr Trump weighing in overnight by tweeting that “It is incredible that with a very strong dollar and virtually no inflation, the outside world blowing up around us, Paris is burning and China way down, the Fed is even considering yet another interest rate hike. Take the Victory!”

Good Luck