30th November – Daily Currency Market Report

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The Market in Brief:

                      • AUD grinds lower
                      • UK GDP steady
                      • Spanish Inflation drops again
                      • Gold $1,058 & DJIA 17,800

Market Events Due:

                  • NZ Business Confidence

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AUD/USD: Closed at the week’s lows as the market continues to react to the poor CAPEX number and with thin volumes due to most of the US remaining on holiday. We’ll expect levels to remain here today whilst we wait for tomorrows RBA announcement tomorrow and then the flood of major domestic, Chinese and US data to come over the next few days. These numbers have the potential to really move this market so we’d suggest placing orders at target levels. Call us.

AUD/NZD: Continued to recover from the recent poor Australian data, whilst holding the upward channel. NZ Business Confidence is due this morning and Dairy Prices on Wednesday, so with both expected to be poor the upside is favoured, but dependant on Aussie numbers. We still target August highs, 4 cents above.

AUD/GBP: Continued to trade flat on Friday, as both centres had released weaker than expected data. Governor Carney speaks tomorrow, followed by major data from most sectors through the rest of the week. Coupled with the important local numbers we have the potential to have a sizeable move in either direction and we’d suggest being prepared for that.

AUD/EUR: Has maintained that rejection of the recent highs as the market waits for local news and also to what extent the Europeans will again look to stimulate the economy. The ECB meet on Thursday, so it will be the home-grown numbers that determine direction in the meantime. Technically we sit bang on resistance of the uptrend and need that to hold for a test and break of the 4 months highs that currently cap.

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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