Today’s Key Market Drivers: 12th September 2018
“Aussie Dollar could be in the high 0.50’s in 12 months time.”
The Aussie Dollar continues to be sold off as US and China trade tensions again grab headlines on Tuesday and traders once again bought back into the safe-haven greenback. Any time there is trade tensions between the US and its trading partners the US Dollar has gained and with Australia being so closely aligned to China the Aussie Dollar becomes a proxy along with other emerging market currencies. The local currency slipped further at 10.30am AEST today after the latest Westpac Consumer Confidence report came in under the market’s estimates at -3%. The next piece of high impacting news for the Aussie Dollar is the release of the August unemployment figures which are due at 11.30am Thursday morning. Traders do not expect a change to the current unemployment rate of 5.3%. It is my view the Aussie Dollar will be trading back in the high 0.60’s before the end of the month.
The Pound continues to benefit from positive Brexit rumors that are suggesting a trade deal is getting closer to being finalised with the European Union. Sterling has been sold heavily over the last 6 months but that trend is beginning to reverse and a deal with the EU will get done in coming weeks. When it does you should expect the Pound to continue to rally strongly against currencies such as the Aussie and Kiwi Dollars. The Bank of England will release its September policy statement this Thursday and whilst they won’t raise rates again this month the BOE is now in a tightening cycle and further interest rate increases will happen late this year or early 2019 keeping upward long-term buying pressure on the Pound. It will have its dips along the way but I believe the 6 month sell-off is done and a new trend back higher has started.
The balance of Wednesday is data free when it comes to high impacting news, however, Euro-Zone Industrial Production and Unemployment numbers will be closely eyed. The Euro will remain busy for the balance of the week with the European Central Bank’s September policy statement due tomorrow at 9.45pm AEST. Traders will be keen to hear if the ECB is still planning on winding up its current stimulus program in December. Any deviation from this would see the Euro’s volatility increase substantially.
Tuesday was the first time in 10 years I have not produced a GoldRock Insider Report due to being ill. Thankfully I feel like I am over the hump and on the mend and would like to apologise to those Auckland members who were inconvenienced this week surrounding the rescheduling of the Master Class. Thank you for your patience and understanding and also your kind “get well” comments passed through the LTG team.
Any trade updates throughout the day will be sent via Trade Time. You can also follow my daily updates on Facebook, Twitter, Instagram by searching for TrainwithAndrew. Make sure you subscribe to the Andrew Barnett YouTube channel after watching today’s Sunrise video below.
About the Author: Andrew Barnett
Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular keynote speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).
If you would like to speak to one of our Senior Client Advisors regarding the relative client opportunities offered at LTG GoldRock and how you can follow along with our Professional traders each day in our live trading room please contact us today or you can register for one of our a live coaching and trading webinars by clicking here.