Finport Currency Brief - Courtesy of Compass Global Markets.
Yesterdays Trade Balance number, weaker commodity prices - Gold at 4 month lows - as well as a market preparing for an expected hike in US interest rates next week and the US$ bullishness over Trump's tax reforms has the AU$US$ at 6 month lows.
However, despite all that's been thrown at the local currency, we are still at psychological and technical support levels so therefore still cling to our favoured uptrend. Tonight's US Non-Farm Payroll unemployment data could well be the catalyst for a recovery, so those with US$ bills to pay shouldn't lose hope just yet and those buying AU$ should seriously look at these levels.
Up in Europe it appears the English and Irish are set to agree where the border is to be and that has seen the Pound recover 3/4's of the last weeks sell off, in just the overnight session. The result of all the above is for AU$GBP to hit 18 month lows, although the AU$Euro's move has been less pronounced.
In summary the A$ is on the back foot, but with a holiday season to come and all negativity priced in we see a recovery on the horizon.
Keep the faith and have a great weekend.
M: 0415 066 468
Mob: 0415 066 468