EncoreFX’s daily market updates are written by our experienced and professional dealing team.
by Nicholas Cork
24 hours of consolidation for the AUDUSD in its new US Fed inspired range within the 72’s, in a night where there was plenty of news to keep the traders occupied, but the impact for AUD this time was higher levels against the G10 currencies across the board. EURO was sold after the German Bundesbank president sees economic weakness carried into 2019 and sees lower growth than predicted a few weeks ago, however attempted to offset it in a German way by saying “there’s no reason for doom-mongering. A protracted dent in output isn’t a total economic loss.” The subsequent EURO selling has pushed AUDEUR to six week highs near 0.6350 providing good levels for importers as it is a far cry from the sub 60 cent levels seen four weeks ago. AUDCHF and AUDJPY are also close to six week highs as the reversal of risk-off flows impact the pair, AUDGBP remains elevated as the world watches the UK with dismay and AUDNZD has recovered back above 1.0500 on the changing Interest Rate views.
Today is shaping up for more activity as Trump is currently meeting with the Chinese VP over Trade, Amazon results were just out and they have missed earnings causing the stock to be down 1.7% after market. The long Chinese New Year holidays kick off next week so expect some position squaring today, and PMI results are also due across Asia to add to that activity. Tonight the US has employment data.
Technically : AUDUSD tests the 200 day moving average for the first time since April 2018
© Copyright - EncoreFX, 2018.EncoreFX (Australia) Pty Ltd ABN 42 607 244 879 AFSL 479 870 is the issuer of the financial products in Australia. The information on this website has been prepared without taking into account your objectives, financial situation or needs and so before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. You should obtain the product disclosure statement (PDS) for the relevant product and consider the PDS before making any decision to acquire the product. The information on this website is not directed at residents of any country other than Australia and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of, and comply with, any local law or regulation to which they are subject.