Finport Currency Brief - Courtesy of Compass Global Markets.
The A$ had a solid bounce off our recently discussed support levels as RBA Governor Lowe suggested that the next move in interest rates, when it comes, is more likely to be up. This was an unexpected clarification given that the RBA had only the day before stated they wouldn't want a higher currency. From a technical perspective, this adds strength to the upward trend and we'd really need a shock from either side of the Pacific to force a break lower.
The currency is far from out of the woods however ,as the market is unwilling to take the price action too far from current levels, ahead of tomorrow mornings US Federal Reserve communique and as the US winds down for Thanksgiving weekend. Of course the Fed's report would have been overseen by outgoing Chairwoman Yellen, meaning we have to wait to the new Chairman comes in for a fuller idea on their thoughts on the US economy's direction.
In the meantime then and as said yesterday we sit at fair value and decent levels for both buyers and sellers - I'd suggest just place your orders at the respective end of the recent range.
M: 0415 066 468
Mob: 0415 066 468
I'm busy working on my blog posts. Watch this space!