Author: Rhys Miles
The AUD lost quite a bit of momentum leading into the Easter break and didn’t regain it yesterday offshore or early trade this morning. We start the week around 0.7130 after flirting with 0.7200 towards the middle of last week. Despite a continual appreciation in the price of iron ore and oil the AUD was the biggest loser trading lower against most of the majors on the back of diminished expectations of future Chinese monetary stimulus.
Compounding this was a solid fall in Chinese equities losing over 2% yesterday. Somewhat contradictory in the logic of the AUD’s fall was the reasoning that the expectations of reduced Chinese stimulus was as a result of improving Chinese economic fundamentals.
As clearly evidenced if you attempted to fill your car up over the Easter break, oil has risen sharply. With the US ending waivers to nations importing oil from Iran coupled with existing OPEC production cuts don’t expect your fuel price to come down any time soon.
Don’t be lulled into thinking this week will be quiet. We have local CPI out tomorrow and US GDP on Friday night our time so the potential for a sharp move is high.
© Copyright - EncoreFX, 2018.EncoreFX (Australia) Pty Ltd ABN 42 607 244 879 AFSL 479 870 is the issuer of the financial products in Australia. The information on this website has been prepared without taking into account your objectives, financial situation or needs and so before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. You should obtain the product disclosure statement (PDS) for the relevant product and consider the PDS before making any decision to acquire the product. The information on this website is not directed at residents of any country other than Australia and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of, and comply with, any local law or regulation to which they are subject.
Adam Nikitins and Stewart McCallum were appointed Joint and Several Voluntary Administrators of EncoreFX (Australia) Pty Ltd on 30 March 2020.
Rees Logan, Adam Nikitins and Stewart McCallum were appointed Joint and Several Voluntary Administrators of EncoreFX (NZ) Limited on 30 March 2020.
Any queries regarding the Administrations should be directed to firstname.lastname@example.org.