The Market in Brief:
Market Events Due:
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AUDEUR: The AUD closed the week about 1% higher against the EUR. The solid levels of resistance have since November last year and AUD has now spent the last 4 weeks trying to break this level. However the dire situation in Europe has not changed and EUR rallies have been getting progressively lower since August last year.
AUDGBP: The AUD posted its second consecutive weekly gain against the GBP closing 1.5% higher. The Bank of England cut interest rates as expected to 0.25%, its lowest rate since the bank was established on 27th July 1694. They also increased the Asset Purchase Facility by 70bn GBP, from 375bn to 435bn a month. Governor Carney said they will do whatever it takes to stabilise the economy which sugggests they may cut rates to zero. This saw the GBP sold off solidly across the board.
AUDNZD: AUD finished the week up just over 1% after falling around 1.5% the week before. The short term support managed to stay intact. The RBNZ is expected to cut rates on Thursday by 0.25% to 2%. This is already priced in. The market is expecting another 2 cuts later in the year. There ia a chance the RBNZ may cut by 50 points on Thursday.
AUDJPY: The AUD closed the week down a tiny 6 points against the JPY after being down 100 points earlier in the week. The AUD continues to struggle against the JPY which was the strongest performing currency again last week.
AUDCHF: The AUD finished the week up around 100 points against the CHF. The big line in the sand that has held for 16 months has remained intact.
Compass Global Markets Team.