Finport Currency Brief - Courtesy of Compass Global Markets.
Good morning all;
AUDUSD: Has taken a small dip on the back of weaker than expected domestic CAPEX data and as US Manufacturing numbers continue to improve. Overnight comments from US President Trump that he would put sizeable tariffs on imported steel has caused concern, but that has mainly hit the equity markets.The technical support of 0.7750 was temporarily broken, however that proved to be a false break and we recovered nicely. I'd expect a grind higher again as we head into the weekend and look to Tuesday's RBA meet.
AUDEUR: Has pushed to the bottom of the month long range as the A$ suffers the more on news from the US, despite Eurozone inflation holding at just 1% over the year. There is no other data releases to come from the continent this week, so I'd expect these lows to hold and a small recovery over the next 24 hours.
AUDGBP: UK Manufacturing data understandably pulled back from its 4 1/2 year highs we saw print last month and with news that Prime Minister May still has the Northern Irish border issue to contend with. The above coupled with a weaker A$ elsewhere and whilst we await speeches by PM May and the Bk of England Chief has meant we hold in my previously forecast 0.5580-0.5650 range. Monday might be a slightly bit different however. Best to take advantage of any spike with target orders.
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