The market in brief:
- AUD unchanged
- NZD up
- Australian Construction down
- G7 meetings already offer conflicting reports over Greek debt solution
- Gold at $1,187.75 & Brent Crude at $62.29
Market moving events due:
- Australian CAPEX
- UK GDP
- US Weekly Unemployment Claims
- G7 meetings continue
AUDUSD: The Australian Dollar was pulled higher in Asia, however US Dollar strength returned overnight and the market squared up to see a flat close. Australian Private CAPEX numbers are due this evening, but may only cause a brief spike as focus centres on the G7 meetings and this evening’s release of US Weekly Unemployment Claims. Technically our support level appears to be holding and may well do for the rest of the week.
AUDEUR: Comments from Greek officials that debt talks are going well and that the major points have been covered has seen the Euro strengthen slightly. However the German Fin Min has said that a deal is far from imminent. We’ll continue to watch for any firm announcement and expect these conflicting reports to continue as we head towards the weekend. With such important fundamental issues to be resolved the technical picture will be one of range trading for the next 72 hours.
AUDGBP: The Pound was well supported through the early part of the session in anticipation of the Queens speech, however with the confirmation that there will indeed be an EU referendum the Pound slipped. UK GDP and Business Investment numbers are out this evening and could well see the Pound push past the overnight lows. The move should not be too sizeable given the G7 and upcoming weekend and whilst we have the RBA meeting early next week of course.
AUDNZD: A quiet day yesterday, largely held in the range but which then sparked into life as Fonterra hit the wire and saw a 75 point range traded in minutes. Fonterra have lowered their milk price payout again and said the market is flooded, although then surprised to say that this will change for next year and they see higher prices to come. This has put the Kiwi on the front foot and at 2 week lows. We feel this should be the medium term lows, given the technical picture and see a recovery going forward.
Quote of the day: Never give a sucker an even break. W C Fields
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