7th September – Daily Currency Market Report

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The market in brief:

  • AUD tumbles further
  • NZD falls 110 points
  • US Average Hourly Earnings up
  • US August Non-Farm Payrolls down
  • US July Non-Farm Payrolls revised higher
  • US Unemployment rate drops from 5.3% to 5.1%
  • Gold $1,123 & DJIA 16,136

Market Events Due:

  • Australian Job Advertisements
  • US Bank Holiday (Labour Day)

 

 

 

 

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AUDUSD: Opens over a cent lower than Friday following the US Non-Farm Payrolls report and sizeable drop in US Unemployment. The NFP from August came in 40k below expectations, however the prior month’s data was revised higher and filling the shortfall. This saw a drop in US unemployment and the market took that as an increase chance of an interest rate hike from the FOMC later this month. Looking ahead today will be quiet due to the US Labour day holiday, but tomorrows Chinese Trade Balance number will be key. As will Thursdays domestic Unemployment data and Chinese Inflation release.  Technically there doesn’t seem a lot of support around for another 100 points and any rallies are set to be shallow, so we’d suggest importers reassess their target orders.

AUDEUR: Took another turn lower as the larger investors return to the lower yielding currencies as a safe haven. There is no market moving events due out of Europe this week, so direction will be determined by Asian factors. We do not however that the Euro Group Meetings are next weekend, so that could well keep us range bound.

AUDGBP: The Pound lost ground versus the Greenback and so gains versus the Aussie Dollar were limited. Recent weak UK data is set to continue with Manufacturing numbers on Wednesday ahead of the Bk of England meeting on Thursday. With the above due and the medium term target hit, we cannot see a reason for fresh lows just yet.

AUDNZD: Retraced some of its losses that came earlier in the week. Both currencies are suffering at the hands of a dovish central bank although the RBNZ are set to be the next to move when they meet on Thursday. Odds are swayed to a 0.25% cut and so should mean a move back above 1.11 levels. 

QUOTE OF THE DAY: Your goals, minus your doubts, equal your reality. Ralph Marston. 

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Jim Devonport

Corporate & HNW Client Manager 

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