2nd November – Daily Currency Market Report

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The Market in Brief:

  • AUD stuck in downtrend
  • NZD closes Friday flat
  • NZ Business Confidence picks up
  • Australian Producer Prices increase
  • EU Inflation flat
  • EU Unemployment drops
  • Chinese Manufacturing PMI stays in contraction
  • 2nd tier US data mixed
  • Gold $1,142 & DJIA 17,681

Market Events Due:

  • Australian Building Approvals
  • Chinese Caixin Manufacturing PMI
  • UK Manufacturing
  • US Manufacturing 

 

 

 

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REFERRALS: Client referrals are a very important part of our business. If you know of any contacts that could benefit from our comprehensive range of international currency transfer services, please do let me know. 


AUDUSD: Despite a small increase in Producer Prices the local unit dropped again to hit support of the downward channel. Chinese Manufacturing PMI disappointed for the 3rd month in a row over the weekend with a read that shows it’s still in decline, whilst the US produced an unremarkable bout of 2nd tier data. Focus this week is tomorrows RBA with a 48% chance of a final interest rate cut. Volatility will be huge so we suggest placing orders with targets set 70 points above and 2cents below this morning open.

AUDEUR: Closed Friday slightly higher in the face of a pickup in employment as inflation remains at 0 and there are growing concerns over Greek debt and the amount of additional QE the European Central Bank will unload. Focus is on Wednesdays speech by ECB Chief Draghi, so until then any volatility or move will be short lived. Take advantage whilst you can.  

AUDGBP: Although this pair closed the day flat it has confirmed the break of the short term upward correction and we now see clear room to the downside. It’s a huge week ahead for the Pound with Manufacturing, Construction and Services sectors all reporting along with a BoE meet on Thursday evening. With all of the above expected to be Sterling positive, we appear set for our forecast target level of £0.40pence.

AUDNZD: An uptick in NZ Business Confidence and downturn in Chinese Manufacturing has the Tasman Cross lower again. NZ Dairy prices are released Tuesday evening and Unemployment on Wednesday morning, so expect sharp moves for this pair over that 12 hour period. Technically we appear set for long term support 130 points below.   

QUOTE OF THE DAY: “Why not try and make a young fella’s night? Hopefully, he’ll remember it for a while”. SBW Twickenham 31/10/2015

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 should the spot rate improve or the contract not be required. 

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Jim Devonport

Corporate & HNW Client Manager 

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