8th October – Daily Currency Market Report

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The Market In Brief:

  • AUD strengthens
  • NZD follows suit
  • Strong UK manufacturing data
  • Gold $1,145

Market Events Due:

  • US Employment claims
  • GBP MPC rate announcement
  • US FOMC release

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REFERRALS: Client referrals are a very important part of our business. If you know of any contacts that could benefit from our comprehensive range of international currency transfer services, please do let me know. 


AUD/USD: RBA optimism yesterday combined with recovering commodity prices have ensured the AUD has marched higher reaching near 1 month highs. The recent poor labour data out of the US is also adding weight to the idea that the Fed will delay the 2015 rate hike and will wait till early next year. The recent gains for the Aussie dollar have propelled us close to a significant resistance level so it may be prudent for importers to take advantage of current rates.

AUD/NZD: Just like their antipodean neighbour the Kiwi has enjoyed a good week and stronger commodities prices combined with expectation that both the Fed and the RBNZ will hold rates at current levels has supported the NZD touching 6 week highs.

AUD/GBP: The UK economy continues to gain momentum with recent manufacturing and industrial production both beating expectations. As is the case across the board Sterling is benefiting from market sentiment that that the Fed hike will not happen until 2016. The BOE meeting tomorrow could signal a growing number of MPC members calling for a UK rate hike so both importers and exporters should call us to discuss target levels.

AUD/EUR: The EUR has edged lower as rumours emerge that the EU will look to increase QE further and the fallout from the VW saga and anticipation that other major car manufacturers will be exposed burdens the common currency.

 

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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