Euro heading for parity with the US dollar, European equities benefiting, weaker Aussie benefiting services, watch for Aus employment at 11:30am, ASX futures 5 points higher

The euro currency continues to fall, the market is loving the European Central Bank President's enthusiasm in battling deflation, as Europe completed its third day of quantitative easing - a long journey ahead. As a result, European equities rallied and pretty soon the US is going to figure out that this soaring dollar is going to lose them business if Europe can manage to fire itself up. The question is whether the US Federal Reserve is going to do anything about it. The market often get these calls right, and at present the US dollar strength is pointing to a (fundamentally sound or otherwise) mid-2015 hike. The euro is a largely a mirror image of the US dollar index, given it makes up the majority of it. In today's first chart you can see that it has recently taken a nosedive that has coincided with the commencement of Europe's quantitative easing program. Some traders and investors often over-think the market, "Surely the short EURUSD is a crowded trade, QE kicking in can't push it lower - it's too obvious." Well, not so. The EURUSD is headed for parity, with the euro buying just US$1.0542 as we speak - had the Aussie held its level from early 2013, we'd be at parity with the euro right now! It has been a monster move, and it's no wonder Rivkin's Dealing & Relationship Management Team has been bombarded with interest in its German Blue Chip Portfolio. Remember you can email if you'd like to receive your free 10-stock German portfolio note.

In today's second chart I have illustrated the AUDEUR currency pair, which is meeting a level not seen since September last year and could be setting up traders for a buy above 0.7250. Recent commodity weakness, US dollar strength and a bit of risk-off behaviour in the US has seen the Aussie dollar suffer and as you can see from today's third chart, your holiday to New York is now going to cost you 20% more than it would have at the end of the last financial year. Reserve Bank Assistant Governor Christopher Kent says that the value of services exports have just exceeded the value of our iron ore exports (see today's chart labelled 'Export Values' taken from It is true that this is probably saying just as much about the slump in coal and iron ore prices as it is about the rise of our services sector, but with an Australian dollar weakening it is important to focus on sectors that can actually do something with that foreign exchange edge. I definitely feel as though Sydney Airport Holdings Ltd (SYD) is worth a look for those wanting some exposure to the potential of growing tourism in Australia. Here's a quick note from Shannon Rivkin: "SYD has benefited in recent years from increased demand from Australians for travel, both domestic and abroad. And now that we are seeing a lower currency the expectation is that we will now start to see higher levels of inbound tourism. Additionally, SYD's dividend yield is a supportive 4.5% at current prices based on a dividend that has been growing consistently in recent years."

Today‚Äôs charts are taken from the Rivkin Trader platform. 30,000 global instruments available to trade including FX, commodities, index, ETFs and international shares. Trade Australian share CFDs from just $8 or 0.10%. Click here or phone 1300 748 546 to open a Rivkin Trader account now.

Upcoming economic announcements: Australian consumer inflation expectations at 11am, Bank of England quarterly bulletin at 11:05am, Australian employment report out at 11:30am, US advance retail sales at 11:30pm all Sydney time.

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