4th June – Daily Currency Market Report.

The market in brief:

  • AUD holds the highs
  • NZD lower
  • Australian GDP up
  • UK Services down
  • ECB sees higher growth
  • No Greek debt deal yet
  • US Trade Deficit down
  • US Non-Manufacturing down
  • US ADP jobs report up
  • Gold at $1,186 & Brent Crude at $63.80

Market moving events due:

  • Australian Retail Sales
  • Australian Trade Balance
  • BoE Meet

AUDUSD: A much stronger than expected domestic GDP print saw the Australian Dollar instantly 60 points higher, however it was unable to push on as the market wanted to see what the US data had to show. There was a mixed bag of data from the States, with the ADP jobs report suggesting we may see a better than expected US Non-Farm Payrolls number tomorrow night. Nonetheless the Aussie kept at its recent highs and we now look to the last major releases of the week that come at 11.30am Sydney (and Melbourne!) time.  On the charts we are now jut USD 1cent away from our target and can see that being hit by the end of the week. Support for the exporters to target on any disappointment is 80 points below. 

AUDEUR: The local data saw a small gain during the Asian session; however a much more upbeat than expected European Central Bank statement has this pair at lows last seen in late February. There is no more data to come from the continent, but reports suggest a Greek deal is about to be struck and should that come then there may well be further downside to come. In the meantime we still expect the range to hold, but now more than ever orders should be placed to take advantage of the imminent forceful break out. 

AUDGBP: A sharpest drop in 4 years for the UK Services sector, coupled with the earlier positive Australian number has seen a correction to 2 week highs for this pair. The Bank of England meet this evening and although there is no chance or a rate hike yet, we’ll look for confirmation of one to come at the start  of 2016 that will soon then be fully priced in. On the charts the downward trend is firmly in place with our ultimate target of 44 pence on track; however we will still get the odd chance for importers – as seen overnight.

AUDNZD: The Tasman Cross has closed another 60 points higher as the Australia GDP figures were in contrast to the recent weaker NZ data and as the RBNZ produced a report that they are to investigate further measures in an attempt to cool Auckland house prices. With no NZ data until Thursdays RBNZ meet, we should continue the sideways/upward price action and reiterate our medium term target is 1.12+ further out.

Quote of the day: No bird soars too high if he soars with his own wings. William Blake

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