Currency Update - Friday 27th December 2019

AUD

Very low trading volume and general optimism has helped keep the
offers on the AUD scarce and added to strength of the Australian Dollar. With
the holiday season underway there has been little in the way of currency
movements and little macroeconomic data to report on. This is expected to
continue today and with only Chinese industrial profits on the data calendar it
is unlikely that we’ll have anything other than subdued trading to finish off
the week.

USD

The Australian has slowly crept higher against the USD over the
holiday season and is now trading at 6 month highs. The poor USD economic data
we had out on Tuesday helped boost the recent ‘Santa Rally’ and sustained by
extremely thin levels of trading. Markets are expected to remain tepid due to
lack of market participants. Ahead today we have the US Treasury Currency
Report and Crude Oil Inventories out tomorrow morning however neither should
have significant impact on the optimism in the market.

EUR

The optimism gripping the markets that has been dubbed the
‘Santa Rally’ has helped the Australian Dollar trade at 0.6260 at time of
writing – six month highs. Almost no data to report with most markets closed or
trading with few participants.

GBP

The Australian Dollar's recent gains against Pound Sterling
has run into a Christmas wall with markets moving sideways since the recent
highs and currently trading at 0.5345. No data or macroeconomic events to
report with continued sideways market movement expected to continue to finish
up the week.

NZD

In the little trading that has been done in the past week, the
Kiwi Dollar has gotten the better of the Australian Dollar with markets trading
at 1.0413. The bids came in for the Kiwi Dollar over the Christmas period with
markets all over the world taking an optimistic tone. Little other data to
report to finish up the week.