GFC like conditions play havoc with currencies, (but is this the bottom for the Aussie-see chart)

Jim Devonport

Compass Global Markets

AUDUSD: Equity markets dragged the local unit down 4% at one stage and panic selling with thin volumes exaggerated moves. Eyes will turn to the PBoC for signs of support, but don’t hold your breath. Forecasting in these conditions is pointless. The sensible course of action is to have a worse-case scenario as a stop and to take advantage of favourable spikes. AUDEUR: Untoward price action sent this pair lower still on risk aversion. The pair touched levels last seen in 2009 and the 50% retracement of the rally we saw from 2008-2012. German Business Confidence numbers come this evening and may force a correction… AUDGBP: The Pound has strengthened as the market withdraws all funding from the outer reaches and repatriates into safer havens. The “Asian” picture will determine further direction and we see no reason for the trend not to continue. AUDNZD: NZD 5 cents higher at one stage as the global investment houses bailed out of anything less liquid. Inflation expectation data is due this morning and should see this pair carry on its merry way. (VIEW LINK)


Jim Devonport
Jim Devonport
Compass Global Markets

Involved in the financial markets performing both sales and dealing roles since the mid 1980’s, Jim has a wealth of knowledge, experience and sales acumen that he uses to build and maintain long lasting business relationships. Constantly...

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