Australian Dollar:

The AUD remained range bound during the most part of yesterday’s Asian trade session as the absence of local announcements provided limited volatility. An index released from the Melbourne Institute that reported a positive outlook of economic indicators had a relatively muted effect on the higher yielding currency as it barely moved within 30 points throughout the day. In overnight markets remarks made by the US Federal Reserve indicated that they are still looking for a further improvement in the economy and labour market, which pushed expectations of a rate hike even further into the year. The Aussie surged off the back of these comments to reach a high of 78.47 US cents. The AU Dollar opens this morning at AUD/USD0.7801

We expect a range today of 0.7760 – 0.7840

New Zealand Dollar:

As the Kiwi sat on the fence throughout the majority of the day yesterday, overnight markets provided a boost for the NZ local currency which opens this morning buying 75.02 US cents. The FOMC statement made in the US was the main catalyst for the NZ dollar’s sharp upward movement, where remarks were made which showed the US Federal Reserve was being more watchful about the US economic recovery, henceforth dampening expectations of a rate rise in the near future. In local news today GDP figures for Q4 of 2014 are set for release, and as this is the broadest measure of economic activity the announcement does look to have a significant effect on the Kiwi value.

Great British Pound:

The pound sterling opens remarkably stronger today as weak data from the UK was countered by dovish remarks from the US Federal Reserve. With local labour price data missing the mark as well as unemployment benefit information printing just on expectations, the Cable took a hit while reaching lows of 1.4631. As the session progressed and the FOMC announced their soft economic outlook for the US, the GBP/USD moved upwards in a sharp manner to open today at GBP/USD1.5019. The Pound also opens today respectively at 1.9257 and 2.0002 against the AU and NZ dollar. With an economic docket free of data today the Pound will be looking to overseas markets for influence.

We expect a range today of GBP/AUD 1.9220 – 0.9300


The EUR/USD has seen a dramatic increase overnight with the US Federal Reserve announcement being the main driver in this USD sell off. The Fed stated that even while unemployment is at 7 year lows they still believe that the labour market has room to improve. Traders have interpreted these comments to read as the Fed still wants the economic conditions to progress even further, and that the current conditions have yet to meet its criteria for a rate increase. The Greenback dropped notably across the board once these statements were made, and the EUR/USD opens this morning at 1.0927. On the horizon we have the EU economic summit and targeted LTRO data being released in the Eurozone, and unemployment claims, current account numbers, and manufacturing index information from the US.

Data releases:


AUD: RBA Bulletin

CHF: SECO Economic Forecasts, Trade Balance, Libor Rate, SNB Monetary Policy Assessment, SNB Press Conference

EUR: ECB Bulletin, Targeted LTRO, EU Economic Summit

GBP: 10-y Bond Auction

JPY: All Industries Activity m/m

NZD: GDP q/q

USD: Unemployment Claims, Current Account, Philly Fed Manufacturing Index, CB Leading Index m/m, FOMC Member Tarullo Speaks, Natural Gas Storage