English
Français
Deutsch
Español
日本語
ελληνικά
العربية
中文
Dansk
AUDUSD
Aussie Tops Winners On The
Day
The Australian dollar gained on the day
to top our three most market moving pairs. Sparking off the day’s bid tone was a
better than expected Cashcard retail index reading. Suggestive that the consumer is alive
and strong, the report rose 0.4 percent in the month of June as consumers
increased their spending. The
higher consumption rate will likely feed into further economic growth with
estimates for a higher gross domestic product being revised to an above 3
percent acceleration for the annualized comparison. Contributing to the higher rate of
consumption is the fact that the labor market remains extremely tight. Currently at record levels, the lack of
unemployment is likely to spur further negotiations of higher wage packages.
IN turn, the push will likely
bolster further inflationary pressures, which are currently running at a 3.7
percent clip on the year on year. Coupled with lessened risk aversion on
the day ahead of the
Rumormill
Interest is noted by buyers at the
0.7400 figure with further bidding likely below. At this point, offers are being taken at
0.7470 and above with heavy pressure emerging at the 0.7500 figure. With option expiry rolling off tomorrow,
the pair looks to be kept under pressure for a majority of the
overnight.
AUDNZD
Bulls Still In Favor Of
AUD
Continued weakness in the
Rumormill
Profit taking is likely to take place
in the underlying spot as the cross continues to hover the session high. Some selling is noted above at the 1.2350
figure and slightly above with bidding emerging around the 1.2250 and 1.2200
figures.
Canadian weakness gave the Australian dollar leg the upper hand on
the session as softer Ivey figures balanced the major pair. On the month, the Ivey purchasing survey
dipped to a 62.2 reading, below the 75 figure seen last month. Although lower, the result was still
positive as the figure continues to remain in expansionary suggestions, buoyed
by a better than expected rebound in building permits. The report sets up for Loonie strength
very well ahead of the employment report and may lend to some strength next week
when the Bank of Canada rate decision.
However, expectations are for further dovishness to be portrayed by
policy makers as the current currency appreciation has effectively trumped
Governor David Dodge’s attempts to efficiently control inflationary
pressures. On the interest rate
front, with rates likely to rise in the Canadian economy, speculation is also
siding with another 25 basis point rate increase by the Reserve Bank of
Rumormill
Strong buying in the Canadian major look to keep any momentum in the
cross to a minimal in the overnight and Asian sessions. Increased bidding is keeping the USDCAD
afloat as orders are centered around the 1.1100
figure.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
