The Market in Brief:
Market Events Due:
RBA Monetary Policy Minutes
NZ Inflation Expectations
German ZEW Economic Sentiment
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AUD/USD: Risk aversion kept the Australian Dollar on the back foot, as did the technical downward channel that currently holds firm as we wait for today’s Monetary Policy Minutes. This evenings US inflation print will also be of interest given the virtual certainty of a US interest rate hike next month. Overall there appears plenty of room to the downside in the short term.
AUD/NZD: Despite a pick up in NZ Retail sales the cross has pushed higher as the Kiwi unit suffers the most from the risk off sentiment, as forecast in yesterdays report. NZ Inflation Expectations are due this morning ensuring continued volatility around lunchtime, however the upward trend should hold.
AUD/GBP: Sterling has made a small gain over the last 24 hours as it fails to make any headway against the US dollar. Inflation data is due this evening; expected to show another weak print and further delaying any hopes for an interest rate hike until this time next year at the earliest. Technical resistance sits 70 points above.
AUD/EUR: has held in a tight range as both currencies suffer at the hands of a flight to the US Dollar. The Euro sits at 7 month lows versus the greenback with Europe in the midst of an economic, political and immigration crises. This pair should travel higher as long as the domestic and Chinese situation doesn’t worsen.
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