The Market in Brief:
Market Events Due:
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AUD/USD: Held the recent highs as a healthier domestic GDP data release matched a better than expected US ADP Non-Farm Payrolls number. The market was also reluctant to take the pair to fresh levels as we wait for important data from both centers, including Fridays US Non-Farm Payrolls report that could well cement an interest rate hike from the FOMC the week after next. Technically the trend should continue with our target now set just 50 points away.
AUD/NZD: The healthier Australian GDP number has the cross to 1 week highs. There is no more NZ data due this week, so direction will come from this side of the Tasman and should again see a push higher. We target August highs, 4 cents above.
AUD/GBP: Touched highs not seen since the 1st of July as the Pound falls out of favour, as forecast yesterday. A weaker than expected Construction data release from the UK put another nail in the coffin of any thoughts of a rate hike from the BoE in the next 12 months. UK Services sector numbers are due this evening and are expected to show an improvement, which may well spark a retracement here so importers take note.
AUD/EUR: Touched fresh 5 month highs on the local data, however the market was spooked by a pick-up in Spanish Employment and a stable EU Inflation print. Price action was also kept in check given the huge expectations of further monetary stimulus to come from this evenings ECB meeting. Any disappointment there and we could see a sizeable retracement, whereas conversely a flood of Euro’s could push us over the 0.70 cents mark, (excuse the pun).
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