Australian economic outlook positive

Halo Financial Team Halo Financial

Australian Dollar Highlights

Pound receives a surprise boost
Australian economic outlook positive

Sterling - Australian Dollar (GBPAUD) FX Technical Analysis

An unexpected boost for Sterling, but Brexit is back on the agenda

The Pound was boosted by US President Elect, Donald Trump’s unexpected win and various ‘reassuring’ soundbites from officials. Of particular note was Brexit Secretary David Davis saying that the UK would consider making payments to the European Union (EU) after it leaves the bloc, to secure the best possible access to the EU single market. Mr Davis told MPs that the "major criterion" was getting the best access for goods and services to the European market, "and if that is included... then of course we would consider it."

Since then, the UK government has been making its appeal to the Supreme Court, declaring that a Parliamentary vote is not needed before triggering Article 50. Should the government ultimately win the case, a ‘Hard Brexit’ may be on the cards, which could send the Pound tumbling. While the government appeal is expected to end on Thursday, the actual verdict isn’t due until January 2017, so a prolonged period of uncertainty awaits.

Australian economy doing well

Over in Australia, the Reserve Bank of Australia elected to leave interest rates on hold, hinting that the economic outlook is positive going forward. The bounce in commodity prices since Trump’s US Presidential win should boost Australia’s trade going forward.

The other key data release to watch out for will be the Aussie Gross Domestic Product (GDP) for Quarter three, which won’t include the pickup commodity prices and could be disappointing, leading to a slight sell off in the Australian Dollar and giving clients a chance of trading over 1.70.

Buying or selling Australian Dollars?

In terms of the technical analysis, GBP-AUD is currently trading between 1.66-1.7150 range; a break higher would open up a move to 1.73 initially, then onto what was seen as a high in September of 1.7800.
On the downside, a break below 1.66 would open up 1.6400 and onto 1.5800.

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Halo Financial Team

Halo Financial

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.