The Aussie Dollar Is Under Pressure But Australian Stocks Are Outperforming Today

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Australian markets are under pressure today after Friday night’s weak close in Europe and the United States. But the jury is out on what impact the events unfolding in Sydney’s Martin Place are having.

The ASX S&P 200 is currently off 0.8% at 5,177 after opening weak and hitting a low below 5,150 in the first hour of trade.

Chart: Screenshot

That needs to be put in context with the Nikkei which is down 0.95% and the early 1.06% loss in Shanghai.

Michael McCarthy, Chief Market Strategist at CMC Markets Sydney, told Business Insider the local share market had done reasonably well to be off around 40 points given the futures were off 57 points on Saturday morning. He felt that the events in Martin Place were not having any impact on markets.

Stan Shamu, IG Markets Strategist said the pressure on Australian markets appeared “to still be offshore related particularly impacting materials and energy.”

The Aussie dollar has found support after making a a fresh four and a half year low this morning at 0.8202 on what Peter Jolly, NAB’s Head of market research said was a combination of “weaker open for Asian equities as well as the terror events in Sydney.” It has since rallied back a little to sit at 0.8220. Still under pressure but holding in for now.

Chart: Go Markets, MT4

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