Finport Currency Brief - Courtesy of Compass Global Markets.
Good morning all;
AUDUSD: Opens 150 points lower than Friday's start of trading as the market reacts to a better than expected US employment picture. News that wages increased at their fastest pace since 2009 has the market pricing in a third interest rate hike from the US central bank this year. Now that news is out of the way, however, we now look to tomorrows major domestic data and also the Reserve Bank meeting. It will be pretty hard for them to be their normal "dovish" selves and with an expected pick up in our Trade Balance we could easily see a bounce back above 0.80c. Those with A$ to buy may want to act fast and those selling the local currency put orders back at Friday's opening levels - as a start.
AUDEUR: Has dropped again and very close to 2 year lows as the Euro's sell off versus the resurgent US$ was less than the A$. We have no major EU centric data this week so direction will come from domestic factors. On the charts, there's no sign on the charts of a bottom to this price action, so those buying Euro's may want to jump on any recover back over 0.6350 levels.
AUDGBP: A similar story for this pair as well as we open at levels last seen exactly a month ago. It's a big week for the Pound with the Bk of England meeting on Thursday night and Manufacturing numbers that come 24 hours later. Expect some sizeable movement here and we'd favour a pull back towards the 0.5650 area.
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