6th November – Daily Currency Market Report

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The Market in Brief:

  • AUD holds flat
  • NZD edges higher
  • Bk of England push back rate hikes
  • US Weekly Unemployment Claims up
  • Gold $1,103 & DJIA 17,870

Market Events Due: 

  • RBA Monetary Policy Statement
  • UK Manufacturing Production
  • US Non-Farm Payrolls
  • US Unemployment Rate (exp 5% from 5.1%) 

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AUDUSD: The Australian Dollar was held in a tight range as RBA Gov Steven’s didn’t produce any surprises in his speech and as we await the US Non-Farm Payrolls data this evening. This number could be the deciding factor as to if the FOMC hike in December or next year, so should produce sizeable volatility. On the charts we are held in a downward channel but expect that to be tested overnight, so suggest placing orders.

AUDEUR: Flat trading for this pair as well with focus set elsewhere. There is no major data from the EU until next week, so we’ll continue to trade around the 50% retracement of the 6 month sell off for now.  

AUDGBP: All go here as the BoE firmly stated that domestic inflation was too low for them to consider tightening interest rates. UK Manufacturing Production is due this evening and expected to show a small decline, so may see a further push higher, however these levels are relatively attractive and we wouldn’t suggest risking it just to look for another 20/30 points considering where we have been recently.  

AUDNZD: A small correction overnight, as can be expected considering we sit 3 cents higher than Monday. RBNZ Gov Wheeler speaks on Wednesday, so either side of that price action will be determined this side of the Tasman and from Chinese data. As ever, we expect higher levels to come.

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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