The market in brief:
- AUD flat
- NZD slightly higher
- RBA minutes say rate cut may be needed
- RBA minutes call for a weaker currency
- German economic sentiment weakens
- Gold at $1201 & Brent Crude at $63.50
Market moving events for the next 24 hours:
- Australian Inflation
- Report on Bk of England votes
AUD-USD: The local currency has traded in a tight 70 point range as the RBA minutes were rather inconclusive as to if there will be an interest rate cut at next month’s meeting, however they did call for a weaker currency again based on the commodity prices. Inflation data is due domestically today and is the only focus for the next 24 hours. On the charts we should stay in the recent range and perhaps keep that way for the rest of the week.
AUD-EUR:The Euro lost ground as the German economic sentiment weakened and as the world waits to see what Friday’s talks over the Greek debt situation holds for us. There is no EU data today so we expect the range to hold and perhaps until the end of the week.
AUD-GBP: The Pound strengthened but was unable to break through key technical support of the pennant formation. This evening sees the release of votes on interest rate policy, but it’s a virtual foregone conclusion that all 9 voted for no change. Our technical picture is coming under threat but should todays Australian inflation number improve then we see the pattern holding. Any disappointment there and the break may come earlier than expected.
AUD-NZD: The Tasman Cross drifted off and just 20 points shy of all-time lows. There is no NZ centric data so price action will be determined by Australian factors. Support should hold at all-time lows 40 points below, with resistance a big figure above.
Quote of the day: If you want to see the sunshine, you have to weather the storm. Frank Lane
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