Finport Currency Brief - Courtesy of Compass Global Markets.
The Australian Dollar has dropped 0.75% as commodity currencies were sold off and as the political situation grows even more dire - despite a smiling and waving PM at APEC. Newspaper coverage of our minority Government fighting a number of battles is starting to grab attention in the major markets and that is preventing investors from buying A$US$ at these relatively low levels.
The local unit continues to hold on to technical chart support, but our immediate focus now turns to today's local business confidence data, a string of Chinese economic cumbers as well as UK inflation data this evening. However the major market moving releases should be the ones on Thursday and Friday.
As per yesterday's message; our medium-term target is 0.80c as long as current levels hold and we have seen a steady increase of sizeable market orders for forward contracts placed at those September highs.
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