The Market In Brief:
Market Events Due:
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AUDUSD: Dropped again as Chinese Manufacturing data hit a 6.5 year low. Sentiment is negative against the Aussie at the moment and we are struggling to find where any upside is to come from, except should the Fed’s Chairwoman Yellen hint at a 2016 rate hike in tomorrow’s speech? Technically trend line support comes from lows seen at the start of the month and should hold for the next 24 hours.
AUDEUR: Pushed back to the bottom of the range as ECB President Draghi spoke overnight and said he’d rather wait and see before considering further stimulus. Adding to this was French and German Manufacturing that both grew over the last month. German Ifo numbers are expected to be week this evening and so should ensure we hold the range once again.
AUDGBP: Sterling gained here for the 4th session in a row, even though the chances of a UK rate hike are diminishing. There is no UK data until next week so we’ll look to the charts and do note trend line support from mid-April has been hit, so suggest exporters take note.
AUDNZD: Has broken through the upward channel as Chinese data and positive results from Fonterra pushed the Kiwi higher. NZ Trade Balance is due this morning and expected to be weak, so we should see a bounce from these oversold levels.
QUOTE OF THE DAY: If everyone is thinking alike, then somebody isn’t thinking. George S. Patton
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