Finport Currency Brief - Courtesy of Compass Global Markets.
The clarification from the Reserve Bank Governor that he sees the next most likely move in interest rates as up, has the A$ continue its recovery. That and the minutes from the US Central Bank meet, which saw some members concerned about low inflation, ensured we remain at the highs as the markets take a breather for the Thanksgiving long weekend.
Technically we have hit the 50% retracement of the sell off seen at the start of the month and we appear comfortable up here, although I personally feel we should still see 78c+ by Christmas.
Looking ahead to next week and there's a distinct lack of major economic data, which suggests the upward channel is safe and we should not see a break of recent lows. However the first week of December will be interesting and likely to produce massive moves for the currency with a full suite of data releases and the Reserve Bank meeting on the 5th as well; but we'll discuss that in the days before.
In the meantime, importers should take advantage of these levels considering we are 100 points higher than where we were just 48 hours ago. Exporters, if you haven't repatriated funds back into A$ by now, don't miss the boat.
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