Australian Dollar
Expected Range 0.7560 – 0.7660
The Australian Dollar spent most of the week tracking sideways after briefly pushing through the 77 cent mark following a drop in the unemployment rate on Thursday. With limited data released on Friday the AUD ran out of steam and another good jobs number out of the US finished saw the Aussie finish the week buying 0.7621. The economic calendar is very quiet this week with just the CB leading Index (Tuesday) and Construction work done (Wednesday) to be released locally. The market opens Monday muted in the lead up to the Jackson Hole meetings where key US policy makers will meet to discuss the state of the US economy.
New Zealand Dollar
Expected Range 0.7210 – 0.7310
Friday saw the NZD move in a familiar range as it continued its trend for the week trying to push through the 0.73 USD and not quite able to do so. In what was a quiet news day the Kiwi failed to make any big moves spending the day trading in a narrow band managing highs of 0.7291. The sole local release this week is the Trade Balance data out on Wednesday so direction from the local market will be limited. The Jackson Hole meeting later in the week is shaping up to be of keen interest to the markets as they look at ways to move the US economy along. The market has opened Monday down slightly from Fridays close and is currently buying 0.7242 USD.
Great British Pound
Expected Range 1.7080 – 1.7240
Last Thursdays strong Retail Sales reading continued to prop the Pound up above the 1.30 level against the US Dollar as the reading continued to indicate that the effects of the UK leaving the European Union in June are still to be felt on the high street. The pair trade between 1.3030 and 1.3090 as bets on when and if the US Federal Reserve will look to raise interest rates continued to be the main catalyst for direction. On the data front Friday’s second estimate of GDP will be the pick of the week with the release expected to come in bang on exceptions of 0.6% for the quarter. Against the Australian and New Zealand Dollar, Sterling opens in Sydney at 1.6800 and 1.7975 respectively.
Majors
Expected Range N/A
The JPY had a positive week against the USD despite a disappointing GDP number earlier in the week. Supported early on by the FOMC minutes which indicated that a majority felt that the Fed should wait on raising interest rates further dampening expectations for a rate hike from the Fed this year. The US however did have another week of good jobs numbers which gave the USD a boost late in the week. The USD/JPY did briefly go below the psychological level of 100 before ending the week just above that level. The main focus for this week will be the Jackson Hole symposium that finishes off the week.