The market in brief:
Market events due:
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AUDUSD: Another quiet session with nothing of note to write about as a lack of economic data and the Chinese central bank seemingly done with their manipulation ensured a 45 point range all day. We’d expect the same again today as we wait for tomorrows RBA minutes and those from the FED on Wednesday night. We remain hemmed in with a break of 0.7250 or 0.7450 to give medium term direction
AUDEUR: A gradual move higher for this pair as German GDP data was lower than forecast, the Greek Government accepted the bailout and as we hit the 50% retracement of the week’s range. Apart from German Manufacturing numbers on Friday there is no economic data, so direction will come domestically – if at all. Technically the downward trend continues and we’d expect it to stay that way.
AUDGBP: The Pound benefited from a touch of weaker economic data elsewhere, however this pair closed the day flat. UK Inflation data comes tomorrow and Retail Sales numbers on Thursday, so we’ll expect a pick up in price action around then. On the charts we watch for the head and shoulders pattern to be completed and if so a resumption of the downtrend.
AUDNZD: The Tasman Cross finished the day with a small gain on dire NZ Retail Sales data. NZ dairy numbers are due to come Wednesday night and an 11th straight negative number may just be enough to force the RBNZ into a larger cut next month. Technically we are breaking higher and appear set for 1.15 in the short term.
QUOTE OF THE DAY: Nearly all men can stand adversity, but if you want to test a man’s character, give him power. Abraham Lincoln
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