Finport Currency Brief - Courtesy of Compass Global Markets.
Good morning all;
AUDUSD: Broke to the downside with a jolt yesterday as the US Dollar strengthened on higher bond yields and our local Unemployment picture disappointed. Last month saw just 4.9k jobs created and the prior months read revised down from +17.5k to -6.3k. The adjustment to last months number was surprising and brought about my forecast break out of the tight range, although I must admit I didn't expect it to be to the downside. This 78c is proving difficult to break at the moment, but I believe we'll have another go very shortly. Those buying A$ may want to call in today, whilst those selling A$ go have a nice weekend.
AUDEUR: The Euro remains fixed against the US$ as there has been no EU data and we look towards next weeks European Central Bank meeting. This pair did have a push above 0.63 levels, however, with the Aussie job's data such a disappointment the highs were short lived. This pair should slowly track back up again, as we close out the week.
AUDGBP: The Pound is the worst performing currency in the G10 as disappointing UK Retail Sales data was coupled with a weaker inflation report and that basically knocks thoughts of an interest rate hike for six. The particularly poor UK winter has been a major factor in the above data, so I see these as not your typical read and still hold my view of a stronger Pound to come. News that UK pharma company Shire may be bought for GBP 40 billion, did give the price action some support. We open at highs that have capped for the last month, so suggest now is a good as time as any to look at paying that UK invoice.
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