16th November – Daily Currency Market Report



The Market in Brief:

    • AUD holds firm
    • Weaker US retails sales
    • Geo –political worries out of Europe
    • Gold $1,087

Market Events Due:

    • RBA Minutes
    • UK inflation numbers
    • ECB President Draghi speech
    • JPY GDP


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AUD/USD: It has been a choppy few days for the Australian dollar after a strong domestic employment read last week provoked an AUD rally, followed by upbeat comments from Fed member Fischer increasing market expectation of a US rate hike this year and eroding some of those gains. The Australian dollar opens remarkably strong this morning especially in the wake of the terrible events out of Paris and investors penchant to head for the safe haven of US dollar at times like these. All eyes now turn to the RBA minutes tomorrow.

AUD/NZD: The Kiwi traded sideways throughout Fridays domestic session and with the weaker retails sales and Fed comments over the weekend presenting mixed results the NZD has stayed within a tight range. Much like its Antipodean neighbour the Geo-political events out of Paris this weekend are likely to push the NZD lower.

AUD/GBP: Sterling enjoyed a strong week after 5 sessions of consecutive gains against the Greenback and opens stronger this morning versus the Australian dollar. It is an important few days for this pair with RBA minutes tomorrow followed by inflation data out of the UK in the evening. A strong inflation read in the UK will signal a step closer for a BOE rate hike and push AUD lower.

AUD/EUR: As you would expect after the horror events in Paris the Euro has had a volatile few days. In the short term the Euro appears to have consolidated although with further QE expected from the Eurozone and the Fed looking to hike rates there is considerable risk to the downside for the common currency.

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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