Finport Currency Brief - Courtesy of Compass Global Markets.
Good morning all;
AUDUSD: Price action has been quite supportive of my view the A$ is headed for higher ground, here at least. We have had a string of healthy domestic major economic data releases, however the scaremongering reports relating to the fights US President Trump is picking could easily have caused the currency to bounce around in a wider range than the 1c range we have seen - yet here we still sit at 0.77cents. Granted the market has been thinned by holidays and the wait for tonight’s all important US Unemployment report, however it has taken much less than this to create a risk averse environment that results in a concerted sell off. Tonight’s US numbers are expected to show another sizeable gain in the number of jobs created the past month, but the pace of that gain is slowing whilst the real markets sees Trump’s comments for what they are – bluster. Big picture is the worlds economy is in a good place; so equities and commodities and thus the A$ have some catching up to do.
AUDEUR: Congratulations to those that took heed of my Wednesday report to convert your Euro's into Aussie as a number of weaker second tier French and Dutch economic data releases, as well as a generally buoyant A$, has this pair at 2 week highs. We do sit bang on the 50% recovery level of the low / high extremes seen since the 2nd February, so I can't see too much further upside for perhaps more than a week.
AUDGBP: A similar story here as we hit highs last seen on the 19th March. The move has generally been accredited to the weaker than expected UK Construction sector and Services sector data released in the last few days, however looking at the charts we had hit technical resistance from a trend line coming since mid 2016. The overall trend is still very much held in the downward channel, however those buying back their A$ may get a fair suck of the sav.
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