A$ forming a base?

Finport Currency Brief - Courtesy of Compass Global Markets.

Good morning all;

AUDUSD: Has held around 6 week lows on the general malaise surrounding our domestic inflation prospects as well as the negative sentiment in other markets, (Dow Jones fell another 1,000 points overnight) and weaker Chinese Trade Balance data. Today sees the release of the monetary policy notes from Tuesdays Reserve Bank meeting, however Chinese Inflation numbers are likely to have the greater effect on price action. On the charts we do see some technical support above the 100 Day Moving Average and I'm starting to feel we are building a long term base for a fresh push back above 80/85c. More on that next week.

AUDEUR: Has traded sideways for the last few sessions as comments from the European Central Bank's economist suggested that inflationary pressures may not equate a removal of monetary stimulus - in other words just because we may have an uptick of inflation we aren't going to stop flooding money into the system. With no EU data due until next week, focus will be in Asia and should mean 0.6350 holds for a push back to 0.65c.

AUDGBP: News that the Bank of England have revised the timing of any future interest rate hikes, due to a stronger growth story in the UK, surprised most in the market. The result was a drop in the exchange rate to lows last seen in June 2016, however we have bounced back somewhat to just shy of 0.5650 levels. This confirms our comments in the last report that both buyers and sellers are happy around here.

Have a great weekend.

Jim Devonport

E: jim.devonport@finport.com

M: 0415 066 468

AUDUSD

AUDEUR

AUDGBP

Featured Posts
Posts Are Coming Soon
Stay tuned...
Recent Posts
Archive
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

Free Call: 1800 FINPORT (346767)   Email: info@finport.com

Finport Finance Pty Limited ACN 624 778 123.

Finport Trade Finance Pty Limited ACN 606 669 505.

 

Business Address: Suite 105, 20A Danks Street, Waterloo, NSW 2017

Registered Office: Level 11, 1 York Street, Sydney NSW 2000

Mailing Address: PO Box 2289, Taren Point NSW 2229

 

Finport makes no warranty, express or implied, concerning the suitability, completeness, quality or exactness of the information and models provided in this website.

Website Terms of Use     Disclaimer    Privacy Policy

  • Facebook Social Icon