Australian Dollar:

The local currency took a sharp turn downwards intraday as the RBA revealed in its Monetary Policy Meeting Minutes that they currently have inflationary concerns about the housing market, and that they still believe the exchange rate remains fundamentally overvalued. The reserve bank also added that they did consider cutting rates in March, however decided to hold off on this for the time being, which indicates that another cut may be expected in the near future. During yesterday’s trading session the Aussie saw lows of US76.01, however recovered most of these losses before conclusion. After a tumultuous trading session the AUD opens only slightly weaker against its US counterpart at 0.7614, and with no local data set for release the AU Dollar will look to overseas markets for any direction.

We expect a range today of 0.7570 – 0.7650

New Zealand Dollar:

 The Kiwi has depreciated against most its major counterparts yesterday as dairy product prices fell in the most recent Global Dairy Trade auction. Being one of New Zealand’s largest commodity exports, the concerns that this could have a negative effect on the economy seemed to weigh down the local currency which saw a large sell off through the overnight markets. The NZ Dollar saw highs of US74.04, before dropping more than a cent to intraday lows of US73.02. The release of the current account data will attract traders focus today as this difference in value between imports and exports has a direct link to currency demand, with overseas investors needing to access the local currency for domestic transactions.  

Great British Pound:

The Cable opens lower this morning at 1.4736 due to expectations that the BOE will leave rates on hold for the time being. This contributing factor saw the Pound sterling decline in a sharp fashion overnight, and bottom out at GBP/USD1.4719. With today’s attention directed towards a myriad of local announcements looking to have a significant effect on the domestic currency (labour data, unemployment figures, BOE minutes, and the annual budget release) the Pound is likely to experience notable volatility throughout the day’s session.

We expect a range today of GBP/AUD 1.9320 – 1.9400


The EUR/USD edged higher through trade yesterday after positive core inflationary figures, combined with positive economic sentiment data was printed. Furthermore a statement was released from Eurostat, an organisation that provides statistical information to EU institutions, which stated that employment in the Eurozone rose in a more favourable fashion in Q4 of 2014 compared to Q3 in 2014. Coming up today all eyes will be on the US markets for direction as FOMC economic projections, the FOMC statement, and the Federal Funds Rate information are scheduled for publication. The EUR/USD commences trade today at 1.0588

Data releases:


AUD: MI Leading Index m/m

CAD: Wholesale Sales m/m

CHF: ZEW Economic Expectations

CNY: Foreign Direct Investment ytd/y

EUR: Italian Trade Balance, Trade Balance, German 10-y Bond Auction

GBP: Average Earnings Index 3m/y, Claimant Count Change, MPC Official Bank Rate Votes, MPC Asset Purchase Facility Votes, Unemployment Rate, Annual Budget Release

JPY: Trade Balance, BOJ Monthly Report

NZD: GDT Price Index, Current Account

USD: Crude Oil Inventories, FOMC Economic Projections, FOMC Statement, Federal Funds Rate, Treasury Sec Lew Speaks, FOMC Press Conference