Weak global outlook, fall in commodity prices and slowdown in China continue to plague the Australian Dollar which sank to its lowest level in 7 years falling further from Friday’s close at 69.54 to 68.61 US cents. The economy is looking for further confirmation of business resilience but until such is proven, the value of the Dollar is likely to remain subdued. Our projections for the Australian dollar is around US 65-66 cents and we are not far from reaching those levels.
BEAR RAID ON STOCK MARKET CONTINUES
Stock markets worldwide continued its fall with the Dow Jones industrial average falling 358 points. Since 31 December, the Dow has fallen from 17425 to 15988 or over 8%. ASX 200 fell 460 points from 5311 at the end of December to 4851, a fall of 8.6%.
IRAN ANNOUNCES INCREASE IN OIL OUTPUTS, PRICE FALLS
Oil price is falling but at the bowser we still do not see the price falling below A$1.00 for standard E10 fuel. Australian wholesale prices for petrol and diesel are closely linked to the Singapore prices of petrol and diesel. Shipping costs and Australian taxes of approximately 38 cents per litre make up the full retail price. However, the falling value of the Australian Dollar is offsetting the fuel prices. Iran has just announced that it is lifting its oil output following the expiry of the 2 year UN imposed sanctions over nuclear armament.
market update for the week
| Australia Cash rate Australia 90 d bank bill (mid) Australia 10 y bond US 10y Govt bond AUD/USD AUD/EUR AUD/JPY AUD/CNY ASX 200 S&P 500 Dow Jones Shanghai Composite Brent Crude(USD per BBL) Gold Spot (USD per oz) | WEEK ENDING 15.1.16 2.00 2.305 2.69 2.03 0.6948 (18.1.16) 0.6384 81.82 4.5765 4851 1880 15988 2901 28.94 1090.7 | WEEK ENDING 8.1.16 2.00 2.318 2.77 2.12 0.7061 0.6492 83.57 4.6528 4902 1922 16346 3186 32.93 1106.98 |
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