Finport Currency Brief - Courtesy of Compass Global Markets.
The Australian Dollar had our favoured move this week but failed to hold support levels yesterday and fell away due to a continuation of weak wage price inflation data. Although that was the excuse in mainstream media, when reading between the lines of offshore financial news reports, the domestic political situation here is not one that investors are happy to put their money in. Weaker commodity prices as well as a resurgent Euro has also turned towards the northern hemisphere.
Focus today will be on Australian unemployment figures due at 11.30am that are expected to show a drop from last month and should we see any move higher for the unemployment rate, then the A$ will come under pressure again.
Looking further out the upward trend is still in place as you can draw a direct line between the lows of mid Dec'16 to May'17 to today's opening levels. We therefore still hold our medium-term target at 0.80c, but today's data has taken on significant importance as a disappointment there could open the flood gates - exporters stand by.
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