Forex Analysis
Australian Markets Weekly
We recently moved our AUD forecasts lower, to accommodate the softening domestic economy and the lower RBA interest rate profile.
Weekly Commentary
A household-centric week of local data has reinforced our view that the Reserve Bank will be raising interest rates early next year,
FX SENTIMENT REPORT
EUR NET LONG RISES; AUD HIT BY SHORT COVERING • USD net long narrows to $16bn as traders narrow their short AUD position and add to their net long EUR position.
EUR Mid-day Analysis
The September Euro has given back little of yesterday’s sharp recovery rally, as prices have stayed within a tight trading range during the overnight session.
JPY Mid-day Analysis
The September Yen made another attempt to climb past the 103.00 level during overnight trading, but has slid back towards unchanged levels this morning.
USD Mid-day Analysis
The Dollar is grinding out a modest gain this morning, but at this point is barely higher for the week after yesterday’s steep reversal obliterated most of its recent gains.
CHF Mid-day Analysis
The September Swiss was unable to sustain yesterday’s massive recovery rally into today’s session, and is finding moderate pressure early in this morning’s trading.
The Global Macro Pulse
NZD dropped from a high above 0.810 before stabilizing at 0.807 on news of Wellington quakes. AUD continued to strengthen to 0.917, pulling AUDNZD higher to 1.135.
Europe – Tapering expectations still driving yields higher…
Then focus turned to the raft of US economic news. While the labour market continues to improve gradually, other economic indicators were generally softer than expected.