24th September – Daily Currency Market Report

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The Market In Brief:

  • AUD drops for 3rd day in a row
  • NZD bounces on Fonterra news
  • Chinese Manufacturing disappoints
  • French Manufacturing up
  • German Manufacturing down
  • ECB’s Draghi less dovish
  • Gold $1,130 & DJIA 16,333

 

Market Events Due:

  • NZ Trade Balance
  • German Ifo Business Climate
  • EU LTRO
  • US Durable Goods
  • US Weekly Unemployment Claims
  • Fed’s Yellen speaks (Friday 7am Syd) 

 

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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

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 should the spot rate improve or the contract not be required.

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Jim Devonport

Corporate & HNW Client Manager 

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