AUD – Australian Dollar
The Australian dollar broadly consolidated overnight, opening this morning at 0.7422 despite volatility in global markets. With very little to digest on the economic calendar, the Australian continues to trade on risk sentiment which took a decidedly sour tone at the start of the European trading session as Brexit once again took center stage. scene. Negotiations between the EU and the UK are coming to an end, with the market now forced to consider the possibility of a no-deal. Barnier has reportedly said he cannot guarantee a deal and that it will be up to the UK to take the next step. Risk aversion briefly dominated the European trading session and led the Aussie to drop to 0.7370. Nonetheless, the Australian has turned his tide after headlines in the UK suggest the UK government will drop controversial sections of its home markets bill if a trade deal goes through. Supported by the news, markets are generally unchanged from yesterday, although Brexit headlines will continue to influence market sentiment today in the absence of a heavy economic calendar.
Key movers
The Great British Pound enters our Key Movers section after a no-deal Brexit becomes a real possibility. The market has generally taken into account that a deal will be made, even if it was at the 11th hour. This optimism was seriously challenged overnight when EU chief negotiator Barnier told EU ambassadors that negotiations were stalled on long-standing issues of fishing rights, the conditions of “competition” fair ”and dispute resolution. Barnier also reportedly said he couldn’t guarantee a deal and it was up to the UK to come to the table. British Prime Minister Johnston and European Commission President Von der Leyen are said to meet face to face for an 11am meeting on Wednesday or Thursday to break the deadlock. The British pound fell 1.6% at one point, but has since recovered to post a decline of 0.6%. The euro also initially fell 0.4%, but has since rallied to gain 0.1%.
Expected beaches
AUD / CAD: 0.9441 – 0.9554 ▼
AUD / EUR: 0.6090 – 0.6163 ▼
GBP / AUD: 1.7921 – 1.8138 ▼
AUD / NZD: 1.0474 – 1.0601 ▼
AUD / USD: 0.7376 – 0.7465 ▲