The Market In Brief:
Market Events Due:
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AUDUSD: Was again on the back foot throughout Asia, however did recover with weaker than expected US data and as the market waited for Fed Chairwoman Yellen’s speech. Hitting the wires this morning she has said a rate move is likely appropriate this year and confirms our thoughts of a Christmas hike. We have gapped lower at the open, but suggest this will be filled during the day as we wait for US GDP this evening and so exporters should get in early whilst importers wait for higher levels.
AUDEUR: The Euro continued to march higher across the board, especially versus the Pound, as the market shifts sentiment on the common currency. The overnight move was reversed as we awaited Yellen’s speech and hit 5 week old technical support, but sentiment appears strong for a break to the downside.
AUDGBP: A flat close whilst price action kept within the downward channel. Sterling is nonetheless not the world’s favourite currency either at the moment so we can’t see too much of a reason for this pair to break the trend perhaps until the start of next month.
AUDNZD: Has maintained its move lower on the back of the positive results from Fonterra and their higher pay out to farmers. This flies in the face of the 3 month long decline in dairy prices and so the market is readjusting expectations accordingly. On the charts we also appear to be closing the RBNZ inspired gap from earlier in the month so feel that will be the target for any AUD buyers out there.
Quote of the day: The winds and the waves are always on the side of the ablest navigators. Edward Gibbon.
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