The market in brief:
- AUD supported
- NZD lower
- NZD Building Consents drop
- RBA’s Stevens says
- Australian Building Approvals drop
- Australian Import prices up
- German Inflation as expected
- German Unemployment up
- US GDP disappoints
- US Weekly Jobless claims
- Gold at $1,088 & DJIA 17,757
Market moving events due:
- NZ Business Confidence
- Australian Producer Prices
- European Unemployment
- Chinese Manufacturing (Sat)
AUDUSD: The Australian Dollar has traded in the range and was well supported when dropping slightly following local Building numbers and prior to the US data. Upon those releases we learned that GDP wasn’t as strong as expected and Weekly Jobless claims are on the up; seeing the US Dollar weaken as a result. Price action is fairly tight and we have been comfortably held in the week long range. We expect that to continue for today and perhaps until Tuesdays RBA meeting. But we’ll discuss that come Monday.
AUDEUR: The Australian Dollar continues to correct higher from the heavy sell off, despite local economic data, as European numbers were not as healthy as expected. Today sees more second tier data, with the EU Unemployment Rate the more important. On the charts and the reverse head and shoulders pattern broke a day early, so it will be interesting to see if this upward move can continue.
AUDGBP: The sizeable shift lower continues as there was no UK data to note and effect market sentiment. There is nothing of note from the UK again today, however with the weekend approaching we may see a small correction for importers to grab.
AUDNZD: Another up day for this pair and normal service appears to have resumed. NZ Building consents came out much lower than expected giving further confirmation that the Christchurch rebuild has peaked. NZ business Confidence is due this morning and should see another negative print, therefore propelling the Tasman Cross higher again. As forecast the general support level has held but we may not see a concerted move until the RBA has passed.
Quote of the day: Good humour is a tonic for mind and body. It is the best antidote for anxiety and depression. It is a business asset. It attracts and keeps friends. It lightens human burdens. It is the direct route to serenity and contentment. Grenville Kleiser
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.
-
{{cta(’28f03804-fc80-45ff-ac3f-de327b671995′)}}