AUD weaker on capex data

Today's Highlights

AUD weaker on capex data

UK GDP should boost Sterling but beware...

FX Market Overview

The Queen opened Parliament, the SNP got all happy-clappy and were told off, David Cameron flew to Europe to start 'negotiations' and much more importantly, growers of Prosecco grapes have warned that a poor harvest could cause shortages of the Italian bubbly and that prices may soar. I can hear my wife binge buying as I write.

In the markets, traders almost had a day off; such was the paucity of data. Aside from the Queen's speech, the only item of note was the Bank of Canada's decision to leave their base lending rate on hold at 0.75% whilst forecasting a recovery in their major export market, America, in the 2nd half of the year. They did warn of slack in the Canadian economy and that weakened the Canadian Dollar a little. A C$1.94 target is still in place for the GBP-CAD exchange rate.

The Australian Dollar weakened overnight after a very poor capital expenditure report showed a sharp slowdown in investment, especially in the hugely influential mining sector. The Sterling - Australian Dollar rate hit the high we saw in February, which is as high as this pair has been since 2009. It is a great opportunity for AUD buyers to grab bargains just below A$2.00

Today's data diary is much more interesting than yesterday's. Undoubtedly the highlight is the release of the 2nd estimate of UK economic growth. There is a strong chance the figure will be marginally higher than the last annualised figure of 2.4%. Perhaps it goes without saying but I will say it anyway; that would be good for the Pound which is already on the cusp of breaking significant resistance levels. In essence, if the Pound can move above €1.42, A$ 2.00, NZ$2.12 and stay above US$1.52, there is plenty of scope for further gains. The note of caution is that Sterling has strengthened significantly in most exchange rates so there may be a need for some profit taking and consolidation - perhaps around the month end tomorrow, before it can make further gains.

So imagine you are driving along a highway in Ohio and you come up behind a car with yellow writing on the rear window. And imagine that writing says, "Got Kidney? I need 1. Call or text...." followed by a phone number. That's what people who encounter Neal Raisman's car will see. He needs a Kidney Donor and is struggling to find a match. So far no success but good luck Neal.