Australian Dollar
Expected Range 0.7130 – 0.7260
After losing ground during local trade yesterday the AUD has closed down just 15 points down from yesterday’s open to finish the day at 0.7202 against the USD. With no data out in Australia and nothing to give the Australian Dollar support the Australian Dollar spent most of the day sliding toward intraday lows of 0.7145. During the Wall Street session the US Flash Services PMI missed its mark (49.8 vs expectations of 53.4) and then new home sales failed to impress which led to USD weakness. Oil prices also increased to help give the AUD some support. The Private Capital Expenditure q/q data will be the main piece of news coming out in Australia this morning.
New Zealand Dollar
Expected Range 0.6600 – 0.6750
The New Zealand Dollar was bolstered late in the day by USD weakness after the data releases late in trade and finds itself opening this morning where it opened yesterday at 0.6667. The New Zealand Dollar did reach intraday lows of 0.6586 before recovering to where we are this morning. In what has been a slow week for data releases coming out of NZ we will see the Visitor Arrivals m/m released today but the biggest piece of news for the week will be the trade balance data out tomorrow. For today however the NZD will take direction from overseas markets including from the US Prelim GDP data out tonight.
Great British Pound
Expected Range 1.9200 – 1.9600
The GBP continued to lose ground on Wednesday despite not having any new news about the British exit from the Eurozone. While the move was not as significant as the previous day’s movement the dovish tone is still hanging over the Sterling. The GBP finds itself trading at 1.9320 against the AUD down from 1.9430 the day before. With the Second estimate of the GDP along with the preliminary Business Investment and index of services data being released tonight the GBP will be looking for some positive data to help give it some support. The GBP buys 1.3930 USD and 2.0885 NZD.
Majors
Expected Range N/A
The USD was hit late by the New Home Sales and Flash Services PMI data released today. The New Home sales coming out under expectations cam in contract to the Existing home sales data that was released the day before and the Flash PMI services missed expectations by a fair way which continues the trend of getting mixed data out of the US economy. With unemployment claim and core durable goods orders out tonight the market will be looking for some good news. Moving to Europe where the Euro has reached levels against the GBP not seen since December 2014 buy 0.7904 GBP.