Finport Currency Brief - Courtesy of Compass Global Markets.
Good morning all;
AUDUSD: Having posted a low of just sub 78c last week the A$ has continued to claw back some gains. Yesterday's domestic Business Confidence data beat expectations and with the continued calm in the equity markets the local currency is building nicely for another push higher. The main focus is, however, this evenings US Inflation data and that has added importance as the recent volatility has been caused by a re-pricing in of a third US interest rate hike this year. I'd favour a small bout of volatility tonight, but a gradual but steady climb higher.
AUDEUR: Had a sudden dip lower last night as European Central Bank President said that the EU economy is out of recession and he is happy with the current situation. The absence of any concern over the recent Euro strength pulled this pair back from just above 0.64c; however the recent lows have held and look to be forming a trend line of support. With no data due focus is on further policymakers comments and should mean we trade the 64c area for this week.
AUDGBP: UK inflation data continued its run of beating economists expectations, although the move lower for this pair was more modest than one could have expected. The main reasons being that the UK political situation is still on rocky ground and also the US inflation data is due in 14 hours. The next few days also has major data releases to come from both Sydney and London, so as ever, best be protected on both sides whilst we trade this range.
M: 0415 066 468