by Nicholas Cork
Markets consolidated on Friday night ahead of the Chinese market reopening today after their long Lunar holiday. The damage to the AUD had already been done after the market put their focus on this headline from the RBA Statement : MIGHT LOWER RATES IF THERE WAS A SUSTAINED RISE IN UNEMPLOYMENT, TOO LOW INFLATION. This led the AUD straight down to the days lows immediately near 0.7060 and has remained in a rough 0.7060/0.7110 range since. The USD saw its 7th day of consecutive gains which has been the longest streak since Dec 2017, as EURO headed towards the years lows on Italian debt rumblings. The CAD was the biggest gainer against the USD after a very strong jobs report, and notably the commodity currencies AUD, CAD and NZD have all been quite volatile against each other as various factors roll in to the equation for 2019.
Geopolitical factors are back on show again with Trump announcing a 2nd date with Kim (no, not Kardashian) in Vietnam at end of Feb, and in Thailand it may be a skittish week ahead after the Kings sister was nominated for Prime Minister on Friday, however the King has now rejected her bid as unconstitutional. Domestically the Canberra ‘bubble’ is officially back in play today, and for anyone catching this mornings newscasts it will be a long few months ahead.
AUD 0.7060/0.7070 pivot point (reuters)
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