EU Morning Report - Australian dollar under pressure

The euro (EUR) weakened against most of its major counterparts, ahead of the European Central Bank (ECB) meeting tomorrow. Thursday’s press conference by the eurozone’s central bank is expected to set the tone for all the policymaking that will follow in the coming months. ECB Executive Board member Asmussen commented that foreign exchange markets are pricing-in a split up of the eurozone and a breakup of its single currency. The Canadian dollar (CAD) will be in the spotlight today around 13:00 GMT, when Bank of Canada will announce their interest rate decision.

§ OIL dropped against the US dollar (USD) from 96.53 to 95.02. A short-term support level appears around the 95.00 area, where the pair is expected to either rebound or breakthrough and produce lower lows.

§ The 2^nd quarter Gross Domestic Product (GDP) for Australia came out at 0.6% versus 0.7% expected, a figure considered to be in line with overall consensus. Nevertheless the Australian (dollar) has been the biggest losing currency so far this month, experiencing selling pressure.

§ The British pound (GBP) advanced to 1.5909 against the US dollar (USD) where it failed to break though the previous high of 1.5912, and retraced down to 1.5863. The Purchasing Manager Index (PMI) for Manufacturing and Services came out well above expectation, while Construction fell below the significant level of 50.

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