The market in brief:
Market moving events due:
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AUDUSD: The Australian Dollar had a volatile but ultimately flat day yesterday. Domestic unemployment was mixed as the seasonally adjusted rate ticked up to 6.3%; however the economy added 38,500 jobs last month. US Weekly Unemployment Claims increased, although this evenings NFP data is key and should determine whether the FOMC start on their tightening path next month. On the chart we have held our forecast support levels, but with the RBA statement this morning and important Chinese data to come this weekend we could see a sizeable gap at Mondays open. Be prepared and call us to place orders.
AUDEUR: A strong pick up in German Manufacturing as a result of the recent Euro weakness has the common currency pushing a tad higher and away from Tuesdays 2 week highs. There is no data set to come until next week, so we expect the range to hold with an upward bias.
AUDGBP: All eyes were on the BoE overnight and particularly the number of members that voted for a hike to interest rates. The market was disappointed with only 1 dissenter out of 9 and this pair reversed all of the last two session’s losses. We open just below the 50% retracement of the 5 week long range and expect that to hold for the downtrend to continue.
AUDNZD: The Tasman Cross had a healthy correction lower of 75 points yesterday as NZ exporters took advantage of their weaker currency and the Kiwi bounced off 6 year lows versus the Greenback. There is no NZ data today so focus will be on the RBA and should therefore mean a resumption of the uptrend.
Quote of the day: Good questions outrank easy answers. Paul Samuelson
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