Finport Currency Brief - Courtesy of Compass Global Markets.
Good morning all;
AUDUSD: The Reserve Bank kept interest rates on hold yesterday, although there was barely a ripple in the market, as we focus on local Retail Sales data today then Trade Balance numbers tomorrow, which are then followed by the all important US Unemployment release on Friday night. Expect some decent volatility then, in the next few days, but looking at the charts my forecast 0.76c support level has indeed held and the weaker US$ trend appears to be underway.
AUDEUR: As per my last report, the recent sell off has been contained with the EUR under pressure, following disappointing EU Manufacturing Activity numbers and an unexpected fall in German Retail Sales. Euro zone Inflation data is due this evening and may print higher than last quarter, but this will not be enough to move their Central Bank into action anytime soon. Now appears a good time to sell Euro's and bring funds back, whilst those buying from overseas can look to 0.64c.
AUDGBP: UK Manufacturing Sector continues to expand apace and has been in expansionary mode since the 3rd quarter of 2016. The Pound is well into it's Brexit recovery and despite a recent and very brief dip, there appears to be nothing that can stop the trend. If you can get above 0.55p when buying Sterling then well done. Those those waiting to bring funds back may find 0.50p is a bit far down the track but achievable if you have time.
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