Jim Devonport
Compass Global Markets
COMPASS DAILY CURRENCY MARKET REPORT 25TH NOVEMBER 2014
The market in brief:
• AUD gives up all of Fridays gains
• NZD does the same
• German Ifo Business Climate beats expectations
• Overall a quieter day with Tokyo on holiday
Market moving events for the next 24 hours:
• BoJ Governor Kuroda Speaks
• NZ Inflations Expectations
• RBA Asst Governor Lowe Speaks
• UK Mortgage Approvals
• UK Inflation Report Hearings
• US GDP
• US Consumer Confidence
AUDUSD: A Tokyo public holiday ensured a slow start to the week and a session that saw the Australian Dollar continuously sold to the lows of Friday. Concerns that Assistant Governor Lowe’s speech this evening will also be anti-AUD also ensured the price action was all one way. There is no other local data due so we look to US GDP and Confidence data, which is set to be mixed, for direction. We expect the range of the last 2 sessions to hold for today.
AUDEUR:
The Euro has strengthened over the Monday session as a healthier print in the German Ifo Business Climate survey and comments from other members of the ECB, that go against Fridays dovish comments from their President Draghi, has also helped buoy the common currency. There is no EU data this evening and in fact none until Thursdays, now all important, inflation report. Unless we have any further conflicting comments this pair should hold within the range seen since Friday.
AUDGBP:
Sterling has also bounced back against its Australian counterpart as the market pulls the currency back from its recent lows ahead of UK Inflation Report Hearings this evening. On the charts we sit back on the bottom of the upward channel and expect to hold here until this evenings RBA speech and UK data. A break is very much on the cards, so we’d suggest placing orders accordingly. Call us for target levels.
AUDJPY:
The Japanese Yen has made small gains versus the Australian Dollar as the market awaits a speech by Bank of Japan Governor Kuroda at midday (SYD). The upside trend is still very much in play, we are simply waiting for the BoJ and results from the upcoming General Election, which means exporters may get to take advantage of shallow dips.
AUDNZD:
The Tasman Cross has also pulled back to the lows of Friday as the rally created by the surprise cut to Chinese interest rates has been erased. NZ Inflation Expectations data is due this afternoon and should provide some volatility. On the charts short term upward trend support is found around here and we expect that to continue.
Thought for today: I am more and more convinced that our happiness or our unhappiness depends far more on the way we meet the events of life than on the nature of those events themselves. Karl Benz (born this day 1844)
Alternative Currency Hedging: Ask us about a great alternative to traditional forward contracts that give the ability to cover at attractive levels, but with the flexibility to walk away if the rate improves or if not required.
Referrals: Client referrals are very important to our business. If you know of any contacts that can benefit from our comprehensive range of international currency transfer services, please do not hesitate to contact me. I’d be glad to assist.
Jim Devonport
The market in brief:
• AUD gives up all of Fridays gains
• NZD does the same
• German Ifo Business Climate beats expectations
• Overall a quieter day with Tokyo on holiday
Market moving events for the next 24 hours:
• BoJ Governor Kuroda Speaks
• NZ Inflations Expectations
• RBA Asst Governor Lowe Speaks
• UK Mortgage Approvals
• UK Inflation Report Hearings
• US GDP
• US Consumer Confidence
AUDUSD: A Tokyo public holiday ensured a slow start to the week and a session that saw the Australian Dollar continuously sold to the lows of Friday. Concerns that Assistant Governor Lowe’s speech this evening will also be anti-AUD also ensured the price action was all one way. There is no other local data due so we look to US GDP and Confidence data, which is set to be mixed, for direction. We expect the range of the last 2 sessions to hold for today.
AUDEUR:
The Euro has strengthened over the Monday session as a healthier print in the German Ifo Business Climate survey and comments from other members of the ECB, that go against Fridays dovish comments from their President Draghi, has also helped buoy the common currency. There is no EU data this evening and in fact none until Thursdays, now all important, inflation report. Unless we have any further conflicting comments this pair should hold within the range seen since Friday.
AUDGBP:
Sterling has also bounced back against its Australian counterpart as the market pulls the currency back from its recent lows ahead of UK Inflation Report Hearings this evening. On the charts we sit back on the bottom of the upward channel and expect to hold here until this evenings RBA speech and UK data. A break is very much on the cards, so we’d suggest placing orders accordingly. Call us for target levels.
AUDJPY:
The Japanese Yen has made small gains versus the Australian Dollar as the market awaits a speech by Bank of Japan Governor Kuroda at midday (SYD). The upside trend is still very much in play, we are simply waiting for the BoJ and results from the upcoming General Election, which means exporters may get to take advantage of shallow dips.
AUDNZD:
The Tasman Cross has also pulled back to the lows of Friday as the rally created by the surprise cut to Chinese interest rates has been erased. NZ Inflation Expectations data is due this afternoon and should provide some volatility. On the charts short term upward trend support is found around here and we expect that to continue.
Thought for today: I am more and more convinced that our happiness or our unhappiness depends far more on the way we meet the events of life than on the nature of those events themselves. Karl Benz (born this day 1844)
Alternative Currency Hedging: Ask us about a great alternative to traditional forward contracts that give the ability to cover at attractive levels, but with the flexibility to walk away if the rate improves or if not required.
Referrals: Client referrals are very important to our business. If you know of any contacts that can benefit from our comprehensive range of international currency transfer services, please do not hesitate to contact me. I’d be glad to assist.
Jim Devonport
Corporate & High Net Worth Client Manager
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