AUD testing support ahead of data

The fear factor is back into markets after comments made by Greek PM Tsipras over the weekend.

AUD
Source: Bloomberg

At the same time we have US rates lift-off priced in for September, given strength in the jobs market. Regardless, the AUD has remained resilient and managed to remain steady against the greenback. AUD/USD will be in focus today with more local and China releases set to hit the wires. China has been a big source of concern for the risk space after the trade balance numbers from the weekend. The AUD has remained relatively unphased and has been in neutral territory around the $0.7800 mark for a while now. Locally, we have NAB business confidence and conditions due out at 11.30 along with quarterly house price index data. Out of China we have CPI at 12.30 which is expected to have cooled to about 1.1% and PPI is also due out at the same time. Cooling CPI will continue to drive expectations of further China easing. Key data for the local currency will be on Thursday when we receive January jobs numbers. Glenn Stevens then testifies before the house of reps on Friday. Price action wise the key for momentum plays will be a close below $0.7800. This could trigger further near term losses.

 

Click to enlarge

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.