Volatility at last as hawkish central bankers take center stage

Jim Devonport

Compass Global Markets

AUDUSD: Rallied 2% as Governor Stevens changed tune suggesting the currency “is adjusting to the significant declines in key commodity prices”. The result was a break of the recent range although a correction lower towards the close as the Fed’s Lockhart said they’re ready to go in September. On the charts initial support is at prior resistance, but don’t be surprised to see that broken given the time of year and importance of the fundamental releases. AUDEUR: Has pushed up to near two week highs. Technicallyour forecast test of resistance came true and we appear set for the 50% retracement of the recent sell off. AUDGBP: The Pound weakened across the board as Construction data disappointed. Services sector numbers are tonight and expected to prove just as volatile. Orders the way to play this week. AUDNZD: Another fall in the dairy price pushed the cross 2 cents higher. Unemployment is due this morning and any uptick there and we should push higher still as chances of a ½% cut to the OCR grow. Medium target still set at 1.20+ (VIEW LINK)


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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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