Finport Currency Brief - Courtesy of Compass Global Markets.
As forecast in earlier reports, the volatile price action has begun with a healthy spike in the A$ exchange rate across the board this morning.
News that the Current Account had shrunk and that Retail Sales had grown at a pace not seen since July sparked the push higher.
The Reserve Bank meeting has also just concluded and their statement saw interest rates on hold as expected, but with a warning shot that a higher A$ would slow the economy. This of course is their standard line and most market makers will ignore that and instead concentrate on the mostly better than expected prints of economic data.
Focus turns to tomorrows domestic GDP numbers and then Friday's all important US Unemployment numbers, but looking slightly further down the track our outlook for the A$ is therefore unchanged and we see higher levels ahead with A$US$ 0.78c, A$EUR 0.66 and A$GBP 0.58 as pre-Christmas targets.
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