Finport Currency Brief - Courtesy of Compass Global Markets.
The Australian Dollar has held firm with yesterdays release of a lower rate of domestic unemployment here, but an uptick in weekly jobless claims from the US. There is no economic data due until next week, so I expect the current situation to remain as is. The technical picture confirms this as the A$US$ holds on to long term technical trend line support levels on the charts that come from lows seen in Jan'16, Dec'16, May'17 and today.
Looking to next week and our main focus is on a speech by the RBA Governor on Tuesday and US Fed Chairwoman the day after. Any change in tone from them could spark a sudden move in that respective direction.
Should we see a break lower then the move will be exaggerated with a mass exodus of A$ investments, whilst I and a large number of market commentators will be forced to amend our long held view of a higher local currency.
Those buying US$ may wish to look at doing so now so as not to take the "Governor Lowe gamble", where as those looking to repatriate US$ funds into A$ have the luxury of being able to wait and I'd suggest they put orders to buy 150 points below.
Have a great weekend.
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