Expected Range 0.7400 – 0.7500
The Australian Dollar has continued to perform well against the USD hitting levels not seen since July last year to open this morning at 0.7467 bolstered by iron ore price having its biggest jump in 8 years. Optimism over the Chinese 5 year plan which was released over the weekend meant the expectations around demand coming out of China have increased enabling the price of iron ore to finish well above the lows seen toward the end of last year. After a fairly days trade where the AIG Construction Index and the ANZ job Advertisements missed expectations the AUDUSD was anchored around the 0.74 mark but during overnight trade with the improving commodity prices the AUD was able to push through 0.7450 to open where we are this morning. The RBA Deputy Governor Lowe will speak this morning with the market looking information about how the RBA will react to the rising AUD.
New Zealand Dollar
Expected Range 0.6740 – 0.6840
The New Zealand Dollar did lose some ground on Monday against the USD on Monday failing to continue last week’s good run and finished the day at 0.6775. The main focus this week on the Reserve Bank monetary policy meeting on Thursday where traders will be looking for any information about a potential rate cut in the near future. Looking through today we have the manufacturing sales q/q data released this morning.
Great British Pound
Expected Range 1.9280 – 1.9780
A fairly quiet day the GBP has stemmed the losses against the AUD, NZD and has even been able to reach two week highs against the USD. The debate around the British Exit from the Eurozone continues but with limited data released on Monday the movement in the currency was also limited. The main focus today for the GBP will be on Bank of England Governor Mark Carney is due to testify to UK lawmakers on the referendum on EU membership.
Expected Range N/A
The Bank of Japan Governor Kuroda spoke yesterday and signalled that the Bank of Japan has finished cutting rates for now. After their decision in January to unexpectedly move some interest rates into negative territory. Kuroda said that the Bank of Japan will now look at the effects of adopting negative interest rates rather than looking to cut interest rates in the immediate future. The Current account and final GDP data (q/q) get release this morning out of Japan. The European Central Bank is meeting on Thursday so the Euro had a fairly quiet day in the lead up to that.