Australian Dollar
Expected Range 0.7120 – 0.7220
The Australian dollar has struggled to gain traction over the past 24 hours, remaining out of favour when valued against its US Counterpart. With a significant portion of the Greenback’s strength still lurking off the back of Fridays bullish comments from the Janet Yellen, the Australian dollar spent yesterday’s session drifting between a range of 0.7148 – 0.7187. With regional weakness mainly from Japan and China also taking its toll, improved macro prints from local sources will be required over the approaching 24 hours if levels above the 72 US Cents mark are to be recaptured. Ahead of building approval and current account numbers for April which are due for release this morning, the Australian dollar opens unchanged at a rate of 0.7181
New Zealand Dollar
Expected Range 0.6640 – 0.6740
With futures markets now pricing in a 36 percent chance the US Fed will hike next month, the New Zealand dollar has been little changed during the early parts of this week. Prompting investors to keep funds out of circulation a light economic calendar domestically coupled with public holidays elsewhere helps explain the unusually tight trading band witnessed on Monday. Opening stable at a rate of 0.6693 when valued against its US Counterpart, a business confidence survey this morning along with substantial flows from the US tonight should see conditions garnish greater participation.
Great British Pound
Expected Range 2.0320 – 2.0430
Keeping a lid on trading volumes, UK markets were closed yesterday for a spring bank holiday. Resulting in a lacklustre start the Great British Pound was left mainly to its own devices, supported only by broader European share markets which reached a four week high. Whilst greenback firmness has capped any noteworthy gains over the short-term, economic releases in the form of May’s Manufacturing PMI as well as Friday’s US non-farm payroll report are likely to have an important bearing over values this week. Opening stronger versus the Greenback at a rate of 1.4638 the Sterling is stronger also versus the Australian dollar (2.0376) and the New Zealand dollar (2.1862).
Majors
Expected Range N/A
Global markets remained in a subdued mood on Monday with public holidays in the United States and the United Kingdom significantly thinning volumes to start to the new week. Although still supported by hawkish comments from Janet Yellen last Friday who suggested the world’s largest economy remains strong enough to absorb a further interest rate hike, overall significant moves over the past 24 hours have been few and far between. Rising by 0.1 percent overnight the US dollar has maintained its stronger footing whilst the Japanese Yen lost notable ground versus its US Counterpart following speculation that Prime Minister Shinzo Abe would postpone next years planned sales tax increase. On the agenda today, flows are expected to normalise ahead a CPI estimate from Europe as well as an indicator of personal spending from the United States. In other currencies moves the 17-nation euro opens flat at a rate of 1.1137.