EncoreFX’s daily market updates are written by our experienced and professional dealing team.
by Nicholas Cork
The AUD continued its rebound late Friday, spiking quickly towards 0.7250 courtesy of another Trump tweet hinting at further progress with China, despite a flat AU Retail Sales earlier in our day. The AUD gains were given up once US employment gains outperformed expectations by 25%, in a month where the jobs growth was expected to be dampened by hurricane activity! The DOW was also 300 pts lower after the data but an early afternoon tweet from you-know-who saw it claw back 200 of those points, and the AUD is now hovering just below the 72 cent mark to start this week.
In the charting world, the AUDUSD and NZDUSD both broke above ‘resistance’ trend lines that had been capping them within a down-trend for 8 and 6 months respectively, and no doubt these break-out points at 0.7150/60 and 0.6550/60 will be monitored very closely by traders should the currencies retest there.
This week the RBA meet on Tuesday, the RBNZ on Thursday, and the US FOMC also meet with the decision due on Fri morning. A real highlight in the next few days will be the US mid-terms on Tuesday US time, and Chinese data later in the week includes their Trade Balance and Inflation data, both potentially market moving if outside the forecast’s.
One last event is the Chinese International Import Expo in Shanghai which runs all week, with an opening speech by Xi Jinping expected today.
Have a great week ahead.
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