Finport Currency Brief - Courtesy of Compass Global Markets.
News that the Current Account Balance had shrunk and Retail Sales had grown stronger than economists forecasts had the A$US$ higher, but the move was held in check by a fall in copper prices and by Reserve Bank comments that any further strength would negate growth and inflation.
The market was also reluctant to take us higher as we wait for domestic GDP data this morning and the most important data release of all ; namely the US Non-Farm Payrolls that come out on Friday night.
It wasn't so tight in Europe however as the breakdown in the BREXIT talks has resulted in the Pound and Euro immediately being sold off across the board and therefore good for local importers here. A$Euro has been held at 3 week highs as EU data was also poor, but A$GBP has retraced on healthy UK services sector numbers.
Looking ahead and we see a continuation of this volatility as the market scrutinises any political comments for a sign of a resolution or further delays. The more sensible strategy would therefore be to have market orders placed with us, so as to take advantage of spikes to your favoured exchange rate.
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