AUD hits 12-month high against the USD: ASX poised to open lower

Market Reports

by Rachael Jones

Following a mixed response from US markets overnight, the Australian share market looks set to open lower this morning. The Australian dollar has pulled back from daily lows to rise over 71 cents to the US dollar. US President Donald Trump has warned the US that the coronavirus pandemic will 'probably get worse before it gets better'. Over in Europe, EU leaders have reached a $2 trillion deal for a recovery plan after marathon talks in Brussels.

Local economic news

The ABS will release the preliminary retail sales figures for June.

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average added 0.6 per cent to 26,840, the S&P 500 gained 0.2 per cent to 3257 and the NASDAQ closed 0.8 per cent lower at 10,680.

European markets closed higher, London’s FTSE rose 0.1 per cent, Paris added 0.2 per cent and Frankfurt gained almost 1 per cent.

Asian markets closed higher, Tokyo’s Nikkei added 0.7 per cent, Hong Kong’s Hang Seng gained 2.3 and China’s Shanghai Composite closed 0.2 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 1.1 per cent fall.

Yesterday, the Australian share market closed 2.6 per cent higher at 6156.

Company news

New Zealand energy generator and retailer Meridian Energy (ASX:MEZ) report that in the month to 20 July 2020, national hydro storage decreased from 103% per cent to 75 per cent of historical average. National electricity demand in June 2020 was 1.1 per cent lower than the same month last year and weekly demand continued its relatively strong levels through Alert Level 1 for the coronavirus pandemic. June 2020 was a warm start to winter across much of the country. Meridian’s New Zealand retail sales volumes in June 2020 were 15.6 per cent higher than June 2019. Shares in Meridian Energy (ASX:MEZ) closed 2.21 per cent lower at $4.43 yesterday.

Currencies

One Australian Dollar at 7:50 AM was buying 71.35 US cents, 56.11 Pence Sterling, 76.19 Yen and 61.89 Euro cents.

Commodities

Iron Ore gained 1.7 per cent to US$111.43.
Iron Ore futures suggest a 2.2 per cent gain.
Gold has added $26 to US$1843 an ounce.
Silver was up $1.52 cents to US$21.72 an ounce.
Oil was up $2.82 to US$41.96 a barrel.

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.