11th September – Daily Currency Market Report

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AUDUSD: Bounced again as forecast and has held up at the highs as domestic employment data and Chinese Inflation numbers both beat expectations. There are a couple of US releases this evening, however we don’t expect the market to move much ahead of the weekends ECOFIN meets. Technically we continue to trade either side of the 50% retracement of the 2 week range and expect that to hold until next week.

AUDEUR: Retraced higher to hit levels seen earlier in the week, however has drifted off a bit as we closed the session. The market is unwilling to take the pair outside the comfort zone ahead of the weekends meetings. Technically our 3 week old downward trend line resistance should therefore hold.

AUDGBP: Rallied to week long highs on the local data releases but fell away during the northern hemisphere session as the Bk of England voted 8-1 to maintain monetary policy and said the Chinese economic events has not had an impact on their think that a rate hike is likely. No UK data this evening and a big week coming up should ensure we hold the 3 week long range.

AUDNZD: Is now 3 cents higher than Wednesdays close as the RBNZ suggested further interest rate cuts are on the cards. NZ manufacturing and the Food Price Index is due this morning but should have no major bearing on price action. Trend is higher but do expect a small correction lower as we NZD buyers jumps on these highs.

QUOTE OF THE DAY: If you do your work with patience and peace, no ones gonna stop you suceeding in it. Kewal Padamwar

ALTERNATIVE CURRENCY HEDGING: Ask us about a great alternative to traditional forward contracts that give the ability to cover at attractive levels, but with the flexibility to walk away should the spot rate improve or the contract not be required.

Jim Devonport

Corporate & HNW Client Manager 

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