4th August – Daily Currency Market Report

The market in brief:

  • AUD drifts ahead of RBA
  • NZD closes lower
  • Australian Job Advertisements drop
  • Chinese Manufacturing drops
  • EU manufacturing up
  • UK Manufacturing up
  • US secondary data mixed
  • Gold at $1,085 & DJIA 17,581

Market moving events due:

  •   Australian Retail Sales
  •   Australian  Trade Balance
  •   Reserve Bk of Australia meet
  •   Spanish Unemployment
  •   UK Construction
  •   NZ Dairy price Index

AUDUSD: The local currency had a more subdued start to the week, as one would expect with a bank holiday and ahead of a data filled day today, drifting 40 points lower by the close. Today’s major data releases and policy announcement by the RBA have the potential to force a break out of the current 1 cent range, however any move is likely to be tempered as we wait for the US jobs numbers on Friday. In the meantime we’ll respect the range.  

AUDEUR: An uninspiring start to the week for this pair as there was hardly any movement despite a slight pickup in European Manufacturing. Spanish Unemployment numbers are due today and will be of just fleeting interest. On the charts will look for a test of the gradual upward channel that we have been held in and that does open up a sizeable amount of upside should it break. Importers take note.

AUDGBP: Another currency pair that was held in tight price action, despite UK Manufacturing showing a 27th straight month of growth. Construction data is due this evening and expected to follow the same pattern and will likely see a more exaggerated move as the domestic data would have passed. The trend is still firmly down.

AUDNZD: The Australian Bank holiday ensured 1 way traffic and pushed the Tasman Cross lower. Today’s Australian events and this evenings NZ Dairy Price, (plus tomorrow mornings NZ Employment), figures are set to make a volatile next 24 hours. Support at 1.10 should hold.

Quote of the day: Brevity is the soul of wit. William Shakespeare 

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 if the rate improves or if not required.


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