The Market In Brief:
Market Events Due:
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AUDUSD: Remained at its recent highs due to a lack of domestic data and then later in the session as US Producer Prices were flat and Consumer Sentiment dropped. Chinese Industrial Production was higher when released over the weekend, but below expectations although the market hasn’t really reacted to that as we open. There is no data today, but we do have a few releases through the week as we wait for perhaps the most important Fed meeting in 10 years. On the charts we see the pair holding around the 50% retracement of the 2 week range.
AUDEUR: Held in a tight 50 point range as we closed for the week and awaited the Finance Ministers meeting. There hasn’t been anything of note from them so we can get look ahead to the only major EU event this week; namely the German ZEW Economic Sentiment release tomorrow. Technically price action is getting tighter so prepare for a large break out by the end of the week.
AUDGBP: Had a healthier finish to the week, but was well contained inside Thursday’s range as we wait for a big few days of UK data. Inflation numbers are first up tomorrow, Unemployment Wednesday and Retail Sales on Thursday. For today however we’ll hold the range, however orders should be placed as we have the potential to test either side.
AUDNZD: Held at the highs following Thursdays RBNZ rate cut. Our focus is Wednesdays Global Dairy Trade Price as it goes for a hat-trick of higher reads, followed by Thursdays GDP number. Technically we have a gap from last Thursdays RBNZ inspired price action and that should mean retracement, especially as we have hit resistance that has been in play since the start of July. Short term NZD buyers may want to get in now.
QUOTE OF THE DAY: Harmony makes small things grow, lack of it makes great things decay. Sallurst
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The Market in Brief
• AUD bounces
• NZD sinks
• Australian Employment up
• Chinese Inflation up
• Bk of England vote 1-8
• UK House Prices up
• US Weekly Unemployment Claims down
• Gold $1,110 & DJIA 16,328