The Market In Brief:
Market Events Due:
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AUDUSD: Was unable to break recent highs during our day as we waited for the FOMC. Their decision to keep interest rates on hold, whilst they wait for an improvement to the global economic picture, sparked a 140 point rally that ensured those importers that placed orders yesterday were filled. The move was however reversed and we open lower on the day. We continue to trade either side of the 50% sell off since late July and will hold here till next week.
AUDEUR: The Euro has strengthened on the back of the Fed’s inaction pulling this pair down from highs that had capped for the month. There is no EU data until next week, so focus turns to the Greek elections and should mean a gradual recovery as we head towards the close.
AUDGBP: The Pound has also strengthened as Retail Sale improved, although only to the 50% retracement of the 3 week old range. We’ll hold here until next week and maybe the rest of the month since there is no UK data due until then.
AUDNZD: The Tasman Cross rallied on poor NZ GDP numbers, but is also range bound as both currencies reacted in a similar fashion once the FOMC decision was known. Resistance is proving a problem to break and increases the chance of a correction lower as importers are forced to act.
Quote of the day: I’m just opposed to a pure inflation-only mandate in which the only thing a central bank cares about is inflation and not employment. Janet Yellen
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