Finport Currency Brief - Courtesy of Compass Global Markets.
AUDUSD: Monday's US bank holiday would normally have meant exchange rates hang around in their recent range, however sentiment is firmly against the US$ at the moment. The result was a fresh high and up to levels not seen since late September. Interestingly the US$CNY rate touched 20 month lows and this has supported my forecast upward push for the local currency. Sentiment should continue in this fashion as we look to take out 0.80c and on to my target 0.8150 levels.
AUDEUR: Did behave as expected and stayed in a tight range as the market digests the planned German political coalition. There is no EU centric data of note this week, so I can see a bounce, especially if the afore mentioned domestic data is as expected.
AUDGBP: Is slightly higher on the day, but only as the market takes advantage of the sudden sell off we saw on Friday. UK inflation data is the markets sole focus this evening and so we should be prepared for a push higher again, should the data release come in weak - as expected. I'd suggest placing orders as moves are likely to be short lived.
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