RBA minutes spark AUD short covering
City Index July 16, 2013 1:37 PM
<p>AUD is trading just shy of the 0.9200 level as European traders arrive at their desks this morning following Friday’s move below 0.9000. The catalyst […]</p>
AUD is trading just shy of the 0.9200 level as European traders arrive at their desks this morning following Friday’s move below 0.9000. The catalyst for the short covering came from the RBA minutes which revealed that although the Australian Central Bank continues to look for further AUD, weakness they are currently not concerned with the inflation outlook. The ACB has noted that it was possible the exchange rate would depreciate further over time as the terms of trade and mining investment declined, which would help to foster a rebalancing of growth in the economy. The Australian CPI data released on 24th July will now be a major focus for the FX market.
It was a relatively subdued session for the other currency pairs as the FX market awaits the major highlight this week – Fed Chairman Ben Bernanke’s semi annual testimony before the House and the Senate on Wednesday.
Today we do have data highlights from the UK, EU and US, with CPI data released from both the UK and US. We get the final HICP and trade balance data from Europe along with the German ZEW economic sentiment index and industrial production data from across the pond this afternoon.
Supports 1.2990-1.2840-1.2750 | Resistance 1.3120-1.3210-1.3300
Supports 99.30-98.80-97.50 | Resistance 100.60-101.30-102.80
Supports 1.4970-1.4920-1.4855 | Resistance 1.5150-1.45200-1.5285
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material 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.