The US dollar was better performed on Friday evening as traders looked to square of positions to limit a negotiation risk the arose over the weekend with the ongoing funding impasse in the States.
The have been some minor news that some Tea-party members are wavering but it appears those rumours are really clutching at straws with both sides likely having to give ground for a resolution. The Australian dollar has opened in-line with the levels it was trading at in the last few hours of last week at 94.30 US cents The US dollar did briefly breach below 97 Yen a few times on Friday’s trading day but did pull back some and managed to be climb to 97.47 Yen, whilst opening about 15 pips below that mark this morning.
The Pounds slide back from its 9 month high last week and that weakness continued all the way to the close on Friday night. After peaking up at 1.625 USD at the start and middle of the week, the last couple of days saw 2.5 cents stripped for it versus the Greenback. It has opened flat so far this morning just sitting above some technical levels of support from September at 1.6026 USD. The Bank of England monetary policy meeting this week, markets will be focused on Governor Carney’s economic outlook.
Today’s session is likely to be a bit softer with the Labour day holiday in NSW, Queensland, South Australia and the ACT taking volumes away from trade. The ASX is open but also likely to be lightly traded, we do have GDP data from Europe early tonight but with a lack of data currency markets will be sound bite focused on the States. With any traction there we should also finally see Non-farm payroll data at some stage while the focus locally this week will be Thursday’s unemployment data.
Joel Murphy
www.pepperstone.com Joel Murphy is a currency analyst and market commentator for Forex Broker Pepperstone and he regularly features on Sky Business News Australia. He has worked in both retail and institutional Forex for last 8 years and completed a Bachelor of Commerce and a Bachelor of Arts from Monash University
