1st June – Daily Currency Market Report.

The market in brief:

  • AUD quiet before a big week
  • NZD lower
  • NZ Building Consents down
  • NZ Business Confidence down
  • Spanish Inflation not as bad as feared
  • US GDP down
  • US Chicago PMI down
  • US Consumer Sentiment up
  • Gold at $1,190.00 & Brent Crude at $65.56

Market moving events due:

  • NZ Bank Holiday
  • Chinese Manufacturing
  • Australian Building Approvals
  • Chinese (HSBC) Manufacturing
  • German Inflation
  • EU Manufacturing
  • UK Manufacturing
  • US Manufacturing

AUDUSD: The Australian Dollar meandered to a close on Friday due to a lack of domestic data, mixed US numbers and as we await tomorrows Reserve Bank of Australia meeting. Either side of that we have important data to contend with each day of this week, with the all-encompassing US Non-Farm Payrolls figures out on Friday. Technically we are just shy of the 6 year lows that held throughout March and April that could well be tested again. The fundamentals holds sway this week and we’d suggest placing orders to take advantage of what will be a volatile 5 days ahead. 

AUDEUR: The Euro made some small ground here as the market is yet to hear anything concrete that is negative from the Greek policymakers. Those talks rumble on and we have the European Central Bank meeting on Wednesday night. With the aforementioned discussions continuing we are set for another week of volatile but ultimately range trading for this pair.

AUDGBP: The Pound gave up some ground here as was expected. This pair had sunk to 6 year lows and so a retracement was due given the end of the month was upon us. Looking ahead it’s a big week for Sterling as virtually every sector in its economy releases its numbers and we have a Bank of England meeting to contend with as well. On the charts we are in a firm downtrend, despite the psychological levels that we are trading at and could well be headed for lower still.

AUDNZD: The Tasman Cross has reversed its recent correction, as forecast, and we closed Friday NZD 2 cents above Wednesday’s lows. It’s a bank holiday in the land of the long white cloud today so we’ll have a quiet start to the week. However we will look to the only piece of NZ data for the week that comes on Tuesday night being the NZ Dairy Trade Price to see if it will fall for 7th straight fortnight. On the charts it appears a virtual given that we are in for a sustained period of choppy upward price action going forward.

Quote of the day: Have you ever noticed how ‘What the hell’ is always the right decision to make? Norma Jean Mortenson, (Marilyn Monroe), born this day 1926

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 if the rate improves or if not required.

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