Finport Currency Brief - Courtesy of Compass Global Markets.
The A$ starts the week 150 points lower than this time 7 days ago.
Several key local data releases and some upbeat positive US numbers contributed to the move. However, it was primarily the fall in commodity prices, US President Trump's tax reforms and the pricing in to the exchange rate of the expected hike in US interest rates this coming Thursday morning.
Looking ahead to this week then and we have domestic unemployment numbers and another flood of US, Chinese, EU and UK data. The result could easily be a recovery of last weeks A$ sell of across the board, another run lower or a bounce around current levels. We favour the former as most negativity has been priced in and looking to economists forecasts they seem to feel our unemployment rate should stay at 5.4% with a pick up in the number of jobs created.
As per Friday's note; 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. But be prepared!
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