26th May – Daily Currency Market Report.

The market in brief:

  • AUD unchanged
  • NZD flat
  • Japans Trade Balance improves
  • NZ Trade Balance beats expectations
  • Very quiet holiday effected session
  • Gold at $1,207 & Brent Crude at $65.48

Market moving events for the next 24 hours:

  • US Durable Goods
  • US Consumer Confidence
  • US New Home Sales

AUDUSD: The Australian Dollar was kept in a very tight and virtually flat range as market makers in all the major centres were away from their desks celebrating Spring Bank Holiday. Focus turns to tonight’s US data numbers but there is nothing this week that is set to be “market changing”. Instead we see the local unit supported at this level that has acted as a pivot pint since late January.  

AUDEUR: A very small drift higher for this cross as the market senses the Greek situation is coming to a crux. There is no European data set to come this week at all so the Greek debt talks and upcoming G7 meeting take centre stage. On the charts we remain trading the range that has been in play since March and therefore decent enough levels for buyers and sellers.

AUDGBP: The UK Bank Holiday also meant there was nothing to see here. In fact this might be the case up until Thursdays GDP data. We’ll expect to trade around these levels, hemmed in by last week’s high and low.

AUDNZD: The Tasman Cross had a more exciting night than most others, only because we weren’t on holiday. The pair traded up 40 points before floating down again upon release of this morning’s better than expected NZ Trade Balance number. What that does tell us however is that the upside is the favoured view of the market. We agree and expect support to hold with the grind higher to be maintained.

Quote of the day: Who sows virtue reaps honour. Leonardo Di Vinci

 

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