The Market in Brief:
Market Events Due:
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The weekend G20 meeting in China has just ended. US President Obama sent a warning to UK’s new Prime Minister Theresa May that the US wants to focus on trade negotiations with the EU and a bloc of pacific nations (including Australia) before considering a deal with the UK.
AUD/JPY has appreciated another 2.2% last week on USD strength against the Yen and expectations of further BoJ monetary policy easing in coming weeks.
The Sterling Pound (GBP) is the best performing currency, up 1.3% last week as the post-BREXIT squeeze continues and excessive GBP short positions are squared with doubts lingering on further BoE rate cuts for now.
AUD/EUR has firmed another 1% towards 0.68 level on higher US and European equity markets. Thursday’s ECB meeting will be in focus awaiting further dovish rhetoric, which should keep the EUR weak.
AUD/NZD as expected breached the 1.0360 support level from last July. This provides a great opportunity for those who need to sell NZD & buy AUD.
Compass Global Markets Team.