17th September – Daily Currency Market Report

CompassLandscape1

The Market In Brief:

  • AUD at 3 week highs
  • NZD up
  • NZ Current Account negative
  • UK Average Earnings up
  • UK Claimant Count Change up
  • UK Unemployment drops to 5.5%
  • EU Inflation down
  • US Inflation down
  • Gold $1,118 & DJIA 16,765

Market Events Due:

  • NZ GDP
  • UK Retail Sales
  • US Building Permits
  • US Weekly Unemployment Claims
  • US Philly Fed Manufacturing Index
  • US Fed Reserve FOMC meet

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AUDUSD: Pushed on as market sentiment starts to swing away from an interest rate hike from the US Federal Reserve’s FOMC tomorrow morning. US Inflation data disappointed analysts’ expectations and the pair have pushed to the top of the upward channel. We may see some correction today as importers jump on and we strongly suggest putting orders in both sides of the market for what will certainly be a volatile next 24 hours.  

AUDEUR: Printed at fresh 3 week highs as well with a weaker than expected EU Inflation data read. There is no major data set to come from either centre for the rest of the week, except a speech by RBA Gov Steven’s, so we shouldn’t see fresh highs short term. However our target is trend line resistance from May that sits 150 points above.

AUDGBP: Closed flat having traded either side of the upward channel. Data from the UK was healthy overall and negated the earlier run higher by the Aussie. UK Retail Sales are due this evening and as they are expected to pick up, we see potential for a break lower and back to Monday’s opening levels.

AUDNZD: Pushed to the top of the upward channel as NZ Current Account data disappointed and as the Aussie comes back into fashion. NZ GDP numbers come this morning and are expected to show an improvement giving us belief the channel will hold. Support for those buying AUD sits 60 points below.

QUOTE OF THE DAY: I can’t change the direction of the wind, but I can adjust my sails to always reach my destination. Jimmy Dean

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.

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Jim Devonport

Corporate & HNW Client Manager 

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