10th March 2015 – Daily Currency Market Report.

The market in brief:

  • AUD trades flat holding tech support
  • NZD holds in a tight range
  • Australian Job Advertisements fall
  • Japanese Current Account weakens
  • Japanese GDP lower
  • EU begins its 1 Trillion bond purchase
  • Gold and Crude Oil square

Market moving events for the next 24 hours:

  • Australian Business Confidence
  • Chinese Inflation
  • Bk of England Governor speaks

AUD-USD: The Australian Dollar was sold on the back of the positive US data seen Friday, however touched technical support, as forecast, and bounced to open flat on the day. Domestic Business Confidence and Chinese Inflation data are due today and as both are expected to see improvements on last month’s number, we can see further upside for the Aussie back into the middle of the upward channel. Support is just below this morning’s open and a healthy target for importers is 150 points above.

AUD-EUR: This pair held a very tight range as both were pushed around by US Dollar strength. There is no major EU centric data due until tomorrow so direction will come from onshore and should see a push back to highs seen on Friday night; however the move may not have the strength to punch on through. We’ll remind importers that these are relatively very high levels and with low levels of volatility the alternative hedging products are cheap and well worth a look at. Call us for pricing.

AUD-GBP:  The Pound continues to strengthen as funds flood out of mainland Europe. There was no data overnight and we really only have the BoE Governor’s speech to focus on this evening. He is not expected to shock us with any huge announcement so we see this pair holding in the short term upward channel that has formed within the longer term downward price action.

AUD-NZD: The Tasman Cross held in a tight 50 point range, despite Prime Minister Key stating that the RBNZ will soon announce measures to cool the overheating housing market. There is no data due until Thursdays central bank meeting, so we feel these higher levels should hold.

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