By Nicholas Cork
After testing 0.7175, AUD gave up its gains reasonably easily as commodity currencies came back under pressure when oil drifter lower from its 5-month highs, mainly due to a rise in crude inventories. The USD then outperformed as better than expected headline data for producer prices was released, followed by another 49 years low in US jobless claims. The GBP barely blinked as an extension for Brexit to the end of October was granted, and the market has largely dismissed the Fed minutes where some policy makers said they “judge it appropriate to raise the target range for the federal funds rate modestly later this year,” however worth noting that other policymakers said that “the federal funds rate could shift in either direction.” Whilst on Central Banks, the RBNZ Governor has said it’s not yet clear whether an interest-rate cut in NZ is warranted in May, also saying that “It is a really mixed picture, it’s just hard.” And with all this occurring along with US-CHINA and US-EU trade spats, FX Volatility has inexplicably fallen to a 5-year low.
AUD starts today’s session 50 points below its highs, back towards 0.7120, sitting nearly midway between its recent 70/72 range. The speculative market is still very short of AUD and may be active on the dips, however, a move below 71 cents would put AUD back into a more neutral mode. The AUDJPY that we have been mentioning has also topped out at 79.60 for the last few days, however, it is still sitting at 79.50 thus risk off is not really evident as 80.00 is still within reach.
GBPUSD DAILY CHART – Reuters
© 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.
Adam Nikitins and Stewart McCallum were appointed Joint and Several Voluntary Administrators of EncoreFX (Australia) Pty Ltd on 30 March 2020.
Rees Logan, Adam Nikitins and Stewart McCallum were appointed Joint and Several Voluntary Administrators of EncoreFX (NZ) Limited on 30 March 2020.
Any queries regarding the Administrations should be directed to email@example.com.