10th April 2015 – Daily Currency Market Report.

The market in brief:

  • AUD still strong
  • NZD flat
  • Australian Construction back into growth mode
  • Greece makes its first debt repayment
  • UK House prices up again
  • UK Trade Balance worsens
  • Bk of England keep rates at 0.50%
  • US Weekly Jobless Claims better than expected
  • Gold down at $1,195 & Brent Crude at $56.80

Market moving events for the next 24 hours:

  • Australian Home Loans
  • Chinese Inflation
  • UK Manufacturing
  • Canadian Unemployment

AUD-USD: The Australian Dollar pushed on again during our session, however was pulled back on broad based US Dollar strength. A pick up in domestic construction and news that Greece had honoured its first debt repayment saw risk appetite increase. However the Aussie soon had a correction as US jobs data was not as bad as feared and once we hit firm technical resistance, as forecast in yesterday’s report. The 50% Fibonacci retracement is still in play and unless we have a stellar Chinese inflation number this lunchtime, we cannot see fresh highs ahead of the weekend. Support for those looking to buy AUD sits at the bottom of the upward channel 50 points below.

AUD-EUR: The Euro was sold again, despite a Greek confirmation that it had honoured the first tranche of debt repayment. The market is aware that there are more repayments due and that cash is fast running out. This coupled by a report from the EU also sparked concern as they stated there are only 6 working days left until the deadline for Greece to represent a revised list of reforms. There is no EU data today, so we may well see these highs hold – as they have done since June 2013. Importers should be looking to hedge at least some future exposure up here.

AUD-GBP: With no sign of an interest rate hike from the Bank of England in sight, a ballooning trade deficit and a storm on the horizon in Europe, the Pound was sold of here and the pair touched highs not seen since late last month. UK Manufacturing data is due this evening and is expected to show an improvement on the prior month. That and the upcoming weekend should ensure any further gains are muted. We’d favour sideways if not lower price action today.

AUD-NZD: The Tasman Cross is stuck between a rock and a hard place at the moment. Any signs of upswing are curtailed, however the parity levels below are ensuring any sell offs are shallow. There is nothing due from NZ till next week and with the weekend fast approaching we should happily trade sideways for another day.

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