The market in brief:
Market events due:
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AUDUSD: The Australian Dollar dipped as the slowdown in the Chinese Manufacturing sector is at the fastest rate in 6 years. The move found support as the month long range held firm and with no positives out of the States either we closed virtually unchanged. FOMC Member Lockhart speaks overnight and RBA Governor Stevens stands up on Wednesday, otherwise there is not much due on the economic calendar before the market turns to the Jackson Hole Symposium. Technically then we have nothing that should spark a concerted break outside the current 2 cent range.
AUDEUR: The Euro benefited from the general USD weakness and we saw another log lower here. However with mixed manufacturing numbers there is no fundamental driving force from the EU and with Greece set for their 5th election in 6 years we don’t expect this move to continue much longer. German Business Climate numbers come tomorrow and could be the spark. On the charts we are at the bottom of the downward channel, also suggesting a correction soon.
AUDGBP: Solid inflation numbers have the Pound on the front foot across the board, at a 7 week high versus the Greenback and just shy of 6.5 year lows on this cross. Thoughts of an interest rate hike from the BoE are increasing but with just UK GDP data due later in the week, we cannot see much further downside for the rest of the month.
AUDNZD: The Antipodean Cross fell another 160 points on Friday as the market sees China’s slowdown as affecting this side of the ditch the most. The week ahead however has NZ Inflation Expectations then Trade Balance numbers due and as we have hit the bottom of the downward channel we can see plenty of scope for a push back against the short term downward trend.
QUOTE OF THE DAY: We are in danger of destroying ourselves by our greed and stupidity. We cannot remain looking inwards at ourselves on a small and increasingly polluted and overcrowded planet. Stephen Hawking
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