Finport Currency Brief - Courtesy of Compass Global Markets.
Good morning all;
AUDUSD: Has fallen 1.5% from the Wednesday highs, despite a weaker US$ across the board. Local inflation data, yesterday's report that Building Approvals were down 20% over the month and firm resistance on the charts has seen the sold off, although with a small recovery at the close. Focus now turns to tonight's US Unemployment data and with such an important number to come, I'd expect the A$ to trade back towards the middle of the range around 0.8050 levels today. As mentioned earlier in the week, we could well be in a different ball park come Monday. Best to have some orders in the market to take advantage.
AUDEUR: Has dropped to 1 month lows on the A$ weakness and as the European currency heads towards a 3 year high versus the greenback. Markets do tend to retrace from extremes ahead of major data releases and holidays, so we should see a grind higher today. However with no major news set to come from the EU for a couple of weeks, all eyes are Tuesdays release of local Retail Sales and Trade Balance figures, as well as the RBA statement of course.
AUDGBP: Is also lower, although not to the extreme of the European cross, as UK manufacturing numbers disappointed the market and on fresh calls for Prime Minister May to resign. The Bank of England also meet next week, so this move to the downside may well be reversed and those buying A$ with Pound's may want to get in sooner rather than later.
Have a great weekend.
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