The market in brief:
- AUD has 3rd day of losses
- NZD also lower
- RBA Dep Gov dovish
- Greece requests deal this month
- Gold at $1,225 & Brent Crude at $66.27
Market moving events due:
- NZ PPI
- RBA Minutes
- NZ Inflation Expectations
- UK Inflation
- German ZEW survey
- US Building Permits
AUDUSD: The Australian Dollar was pulled lower due to a lack of supporting data, dovish comments from RBA Assistant Governor Lowe and as we look towards this mornings release of minutes from the last RBA meeting. The charts suggest these dips should be taken advantage of by exporters as the uptrend remains in place.
AUDEUR: The Euro lost ground here as the market starts to price in a Greek default on its debt interest repayments. The Greek Finance Minister has however tried to say that they are close to a refinancing deal, however the market doesn’t see any permanent solution forthcoming. Technically we’ll bounce around in the medium term range until a decision is made, on or just before the end of the month.
AUDGBP: An amazingly tight but volatile session for this pair as the market sits and waits for important data to come throughout the week. UK numbers start with inflation figures this evening and any read either side of the 0.0% we have had for the last two months will be jumped on. On the charts we feel the upside is favoured, however with such important data to come we could hit either side of the current range, before medium term direction takes hold again.
AUDNZD: The Tasman Cross has edged higher as the market starts to seriously consider the RBNZ cutting interest rates over its next two meetings. This morning weaker than expected NZ PPI print has only added feul to those thoughts. As mentioned yesterday, the upside is firm favourite, however we may see some temporary shallow corrections for those AUD buyers with NZD receipts to take advantage of.
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