The A$US$ holds the highs.

April 12, 2018

Finport Currency Brief - Courtesy of Compass Global Markets.

 

Good morning all;

 

AUDUSD: With the easing of political tensions the Australian Dollar has held on to its recent gains, helped by weaker than expected US data releases overnight. There is nothing on the economic calendar today and so I'd expect the recent tight range to hold as the market winds down for the weekend and looks to next weeks more heavier data. Technically the price action suggests we are happy here and held firmly in the long term upward channel, with 0.76c as the low and mid 0.80's as my target.  

 

AUDEUR: My forecast of a spike in this pair came true overnight as the European Central Bank released its minutes of the last meeting; at which they discussed the common currencies strength as well as the recent threat of trade wars. Industrial Production on the continent also fell for the third straight month and this saw the exchange rate nudge 0.63c for the first time in nearly a month. Much depends on next weeks flood of Australian data releases, but should they come in as per expectations then we may well have seen the low for this pair. 

 

AUDGBP: Has pushed to the bottom of the week long range as the Pound takes advantage of the US Dollar weakness as well as the sell off in the Euro, (see above), and signals confirmation of my view that this is a one way street. Bank of England Governor Carney speaks this evening so that may spark some volatility for AUD sellers / GBP buyers to take advantage of, but otherwise those on the other side of the fence can afford to wait till the last moment. 

 

Jim Devonport

E: jim.devonport@finport.com

M: 0415 066 468 


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