The Market in Brief:
Market Events Due
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AUDUSD: The Australian dollar has gained almost 1% overnight as the market begins to find some sense of stability. There were a range of factors that contributed to this recovery in the AUD, including a bounce back in global equities, a mixed set of Capex data yesterday, a pick-up in commodity prices and generally a better risk sentiment, which has allowed the AUD to consolidate. There is no major domestic data today, so US goods and trades balance tonight, coupled with the Jackson Hole Symposium will dictate price movement over the next 24 hours.
AUDNZD: The Kiwi has also managed to consolidate after Tuesday’s losses and even enjoyed a decent uptick off the back of improved flows in Chinese equity markets and a rise in commodity prices. No domestic data of note today, so will look towards US data overnight for further indication.
AUDGBP: Continued to weaken overnight both against the AUD and USD. Strong US data has fuelled an appetite for the USD amongst investors. These investors have made a late week push to buy USD, as risk sentiment has improved across the board. Attention turns to GDP figures this evening and BOE governor Mark Carney speaking at the Jackson Hole Symposium on Saturday afternoon, this should give the Sterling a clearer picture for the week.
AUDEUR: The EUR like the GBP continues to suffer against a strong USD. This has made for positive reading for EUR importers in Australia, as the AUD has appreciated almost 3.5% against the EUR over the last three days. German import prices also came in weaker overnight, which assisted in pushing the common currency lower. Attention turns to German and Spanish CPI data tonight.
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