11th February 2015 – Daily Currency Market Report.

The market in brief:

  • AUD trades lower
  • NZD closes flat
  • Australian Business Confidence improved
  • Chinese inflation fell
  • UK Manufacturing dropped
  • EU announces emergency meet with Greek government
  • Gold down $7 to 1,232 & Crude Oil down 4.5% to $51.21

Market moving events for the next 24 hours:

  • Australian Consumer Sentiment
  • Japanese Bank Holiday
  • Euro group meetings

AUD-USD: The Australian Dollar is back to its recent lows as despite a pickup in domestic business confidence, Chinese inflation printed weaker than expected and commodity prices retraced some of their gains from earlier in the week. Congratulations to those that heeded our advice to get their transfers booked early. There is no data of note today and with a Japanese bank holiday, we’d favour the ranges holding for the Asian session at least and maybe through to till tomorrow, when we get an idea of the domestic employment situation.

AUD-EUR: The Euro gained ground here as the weaker Australian Dollar was compounded by news that the EU announced they are to have an emergency meeting and report suggest that the new Greek government is to be given a 6 month extension. The current levels should therefore hold until this evening when anything is possible, however all though we favour upside in the medium term we wouldn’t rule out further short term gains for the single currency.

AUD-GBP: The Pound bounced back overnight and recovered all of Monday’s losses, closing at the lows. The move came despite a drop in the Manufacturing sector and illustrates the fickle nature of the markets at the moment. No UK data this evening either should also ensure the range is kept, at least until the EU / Greek announcement.

AUD-JPY: Both currencies have fallen out of favour recently and have seen this pair held in a tight range. A lack of domestic data and a public holiday, (Foundation Day), will mean the range is held.

AUD-NZD: Although the NZD has weakened against most other partners, the Tasman cross has been sold off as the Australian Dollar suffers the most. There is no data from either centre today, so therefore no incentive for the sell off to break recent lows and we’d suggest AUD buyers with NZD receipts jump in and potentially look to hedge here for the medium term.

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