9th October – Daily Currency Market Report

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The Market In Brief:

  • Dovish FOMC comments
  • AUD hits fresh 3 week highs
  • NZD strengthens
  • Gold $1,149

Market Events Due:

  • AUD Home Loans
  • GBP trade balance
  • CAD Unemployment

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AUD/USD: The AUD opens this morning at fresh 3 week highs after a lack of domestic data yesterday meant the FOMC Dovish comments were the driving force for this pair. Low inflation levels and a slowing China appear to be pushing the Fed hike into the new year causing the Greenback to depreciate across the board. Domestically we have home loans data out today and a good number could push the AUD higher to close the week out at new highs.

AUD/GBP: BOE voted to keep rates unchanged at record lows of 0.5% citing that low inflation is an obstacle to returning to higher interest rates. Sterling fell immediately after the comments however did recover some losses after the Dovish FOMC comments and opens this morning lower against AUD.

AUD/NZD: The FOMC comments ensured the good week for NZD continued and with no domestic data it will again be overseas events that decides the next move for NZD.

AUD/EUR: A volatile few days for the EUR as poor Eurozone data put downward pressure on the common currency only for Dovish FOMC comments to claw back some of the losses. Tonight will see French and Italian Industrial production data released although it is not expected to cause any surprises and influence a sizable move for the EUR.

 

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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