Finport Currency Brief - Courtesy of Compass Global Markets.
Good morning all;
AUDUSD: We've pushed through the correction we needed to have in most markets and the A$ has benefited with my forecast recovery to levels seen 2 weeks ago. The local unit now a solid 2c above the recent lows. The move has come despite positive US data and US Treasury yields at 4 year highs as the prior buoyant sentiment takes over. The only fly in the ointment will be Reserve Bank Governor Lowe's speech this morning and I'd expect some comments on the currencies strength, however any effect will only be fleeting. We may therefore have to wait till next week for a break of 0.80c; but can't see anything that will get in the way of the A$ steam train.
AUDEUR: Has held in the 0.6350 to 0.64c range on a lack of developments from the EU and as both currencies react in a similar fashion to this renewed sell off in the US$. There was news that EU GDP and Industrial Production data both expanded, giving the common currency a slight advantage in this pair. Expect the range to hold for a while and transact accordingly.
AUDGBP: We have continued to hold the range, although as with the Euro, it is the Pound that has recovered the more and sees it open below 0.5650 levels. BREXIT negotiations are going well, UK data is firm and Retail Sales data are expected to have improved when released from London this evening. There is pressure to the downside and we may well even test 0.56p but that should be the low for those repatriating Pounds into A$.
Good weekend all.
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