26th June – Daily Currency Market Report.

The market in brief:

  • AUD has a week on the sidelines
  • NZD recovers early losses
  • No side given in Greek talks
  • US Weekly Unemployment Claims up
  • Gold at $1,173 & DJIA 17,888


Market moving events due:

  • NZ Trade Balance
  • EU Summit continues
  • BoE Governor Carney Speaks


AUDUSD: The Australian Dollar has traded in a tight 85 point range since our last report, left mainly on the sidelines due to a lack of domestic data releases and as the market focuses on the northern hemisphere. There is no data due from any of the major centres today, so we expect that range to hold meaning we could see a drift lower as we wind up. Next week promises to be a tad more exciting with major releases and a speech by the RBA Governor. Until then any importers with bills to pay prior to the end of the financial year may want to get in ASAP.

AUDEUR: A bit more action for this pair over the last few days as the threat of Greece staying in the Eurozone has meant that the pair has traded higher. A Greek deal is seen as a negative for the Euro given their struggles, so with a decision having to be made prior to the Tuesday deadline prepare for an explosive move one way or another at any time. On the charts we remain in the general range and current levels are good for both importers and exporters, although strongly suggest orders are placed at chosen levels to take advantage of short term spikes that are sure to come.

AUDGBP: Sterling has understandably given up some of its recent stellar gains as the market bails out of the Euro wide area and into the US Dollar or any other safe haven. Bank of England Governor Carney speaks tonight at the “Conference of Inclusive Capitalism”, but thankfully our week would have ended before he gets up out of his seat. On the charts we may have hit short term highs and levels for importers to buy at, before we grind lower again and continue with our general downtrend.

AUDNZD: The Tasman Cross has had a healthy 135 point correction lower as the market takes advantage of a weaker NZ Dollar. We are set for some end of week fireworks this morning with the release of NZ Trade Balance that is expected to show a sharp decline. On the charts we have printed a “double bottom” at short term support levels and the indicators are all in oversold territory suggesting that we have higher levels to come over the next few days at least. A break of the recent highs, that have been a major pivot point since February 1995, sees this pair set sail for our medium term target NZD 7 cents above.

Quote of the day: Murray[Referring to record producer Quincy Jones] What are some albums that he’s done, Bret?

Bret: Michael Jackson’s “Off the Wall”

Murray: I'll say he is...he's off the planet. Wants to freeze himself, doesn't he? Anyway back to Quincy Jones, what’s he ever done? 

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