Finport Currency Brief - Courtesy of Compass Global Markets.
A weaker than expected drop in GDP data had the A$ held at recent lows, even though the local economy grew at a relatively strong +0.6% over the last quarter, as the market was happy to keep the exchange rate as is. Our real focus was this mornings Trade Balance number and with a shocking print of just +0.11bio, versus an expected +1.37bio and prior +1.60 bio the A$US$ has tanked down to just shy of 6 month support lows.
This mornings levels should see a pick up in A$ buying and so we'd a retracement over the next 12-24 hours whilst we prepare for the US Unemployment data that comes on Friday.
Over in Europe there is still no resolution to where the Irish border is to be placed and still the sticking point that's holding up the BREXIT talks. The A$ has however given up its recent gains with this mornings data, so congratulations to those that took heed of our guidance to pay those GB Pound and Euro invoices earlier in the week. It's now the turn of exporters or those repatriating EU zone receipts.
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