The Market In Brief:
Market Events Due:
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AUDUSD: Retraced a fair chunk of recent gains as local second tier data disappointed. We now look to today’s more important domestic unemployment and Chinese Inflation figures to provide the volatility. Both are expected to show signs of improvement so we could well see the pair bounce off these lows. Technically yesterday’s high was the 50% retracement of the selloff seen since late last month and a break there is needed for further upside.
AUDEUR: Has given up a vast majority of the gains seen at the start of the week as importers jumped on the relatively higher levels. Today’s Asian data will determine short term direction so we’d expect the range to hold as we head towards the weekends Euro group meetings.
AUDGBP: Closes Wednesday lower, due to the weaker local data and despite a correction down in UK Manufacturing, as the market prepares for this evenings Bk of England meeting. No change to rates or policy is expected, nonetheless we should be prepared for some very short term spikes in the meantime.
AUDNZD: The RBNZ have cut interest rates by 0.25% again, as expected. There was some thought of 0.50%, but that was negated by the recent bounce in dairy prices. Governor Wheeler said he sees further cuts in the future as well as a weaker NZ Dollar across the board. Further upside for this pair set to come therefore and we’ll set our sights on 1.12 being short term and 1.15 being medium term trend line resistance.
QUOTE OF THE DAY: A good decision is based on knowledge and not on numbers.
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