Finport Currency Brief - Courtesy of Compass Global Markets.
As suggested yesterday, the recent rally in the AU$US$ came to a halt, however the local currency has managed to hold on to its gains, despite better than expected US Retail Sales data.
There are no major economic releases to come until the new year, so unless there is some form of geo-political surprise then this currency pair should hold around here for the next wee while.
Elsewhere; the AU$Euro has also held at 1 month highs as the European Central Bank kept interest rates at 0.00% and said they would remain there for an extended period of time whilst still pumping Euro30 billion of liquidity into the system each month to keep it afloat. How the EU politicians can suggest the Euro is "working" beggars belief. Anyway moving on......
The Bank of England kept their interest rates unchanged at 0.50%. This was unsurprising given last months hike was the first move in 10 years, although what was interesting was their suggestion that more rate hikes will be needed. The upward correction for AU$GB Pound has been less pronounced, but we still sit near 2 week highs and we'd suggest that may be as good as it get's for those looking to settle invoices this side of Christmas.
Have a great weekend all.
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