Thread: OzForex Market Update (02/08/10 - 06/08/10)

The Pound reached a 6 month high storming the USD 1.5900 following signs the UK economy is recovering early this week spurred on by expansion in the manufacturing sector for the 10th month in a row. This was particularly impressive considering consumer confidence in the UK fell to the weakest level in 11 months according to reports. The Pound rose against the Big Dollar for the ninth consecutive day piercing 1.5960 on Tuesday. When things looked like they were finally turning around for the UK along came ‘Hump-day’ breaking the GBP 9 day winning streak against the US Dollar after a report showed U.K. services growth slowed to the lowest in 13 months in July. From there onwards the GBP has laid flat, sitting around 0.6286 against the USD.

The Aussie had a dodgy start to the week as weaker US and Chinese economic data weighed on risk appetite across the financial markets. As expected the RBA kept the official cash rate unchanged following an unexpected decline in June building approvals and disappointing retail sales figures. Mid-week saw a change of heart when Australian goods and services balance annihilated expectations of 1.81 billion with a 3.54 billion surplus in June. The Aussie relentlessly continues to attack 0.5760 US without much luck. Meanwhile the across the Tasman the Kiwi continues its downward slide after unemployment surged back to a 10 year high jumping 6.8%.

The Euro front has remained fairly quiet hovering mostly between 0.8575 to 0.8298 GBP this week with a slight advantage to the Euro.

Have a great week.

Cheers

Jon Sermon
Alliance Manager

Cheers for the info Jon, we'll be looking forward hearing the updates. :)