Australian Dollar:

With attention shifting away from China’s troubled equity market yesterday, broader measures of sentiment turned positive, a move favouring a stronger Australian dollar. Reaching an overnight high of 0.7344 when valued against its US Counterpart, the Aussie dollar opens this morning holding its ground up above the 73 US Cents mark as it currently swaps hands at a rate of 0.7321. In what’s shaping up as another relatively quiet onshore session, US dollar flows dictated by a two day US Federal Reserve policy meeting remain set to dictate short-term price action.

We expect a range today of 0.7280 – 0.7360

New Zealand Dollar:

The New Zealand dollar has managed to capture around half a cent worth of gains when valued against its US Counterpart overnight, buoyed by speculation the RBNZ will soften its easing bias ahead of a speech on the economy today. Repositioning itself up above the 0.6650 mark, the next 48 hour window is gearing up to be a volatile period with investors also looking towards further clues from the US Fed in relation to the timing of their first hike. Stronger this morning the New Zealand dollar currently buys 66.64 US Cents.

We expect a range today of 0.6620 – 0.6720

Great British Pound:

In a positive sign for Britain’s economy growth accelerated by 0.7 percent during the second quarter of this year, following a 0.4 percent expansion during the first three months. In line with median forecasts, the majority of growth has been attributed to a dominant services industry with the UK now in the midst of its longest period of continuous growth since falling into recession during the GFC of 2008. Supporting the Great British Pound, the Sterling is stronger against the US Dollar this morning at 1.5603 whilst lower against the Aussie (2.1247) and the Kiwi (2.3225).

We expect a range today of 2.1240 – 2.1350

Majors:

Breaking a five day losing streak US Stocks rebounded strongly overnight with the attention of investors shifting away from the heavy falls witnessed across China’s equity market earlier in the week. With the US dollar maintaining its ground ahead of a two day Federal Reserve policy meeting, no change in interest rates are expected this month. Given a September hike remains possible, December remains more probable with the speed of the recovery since quarter one weakness key in determining more specific lift off dates. Painting a less optimistic outlook overnight US consumer confidence weakened in July to its lowest level since August 2011, a result which contradicts the steady progress witnessed across broader labour markets. In currency moves the Greenback is stronger against the Yen this morning at 123.598 whilst weaker against the Euro (1.1058).

Data releases

AUD: No data today  

NZD: RBNZ Gov Wheeler Speaks   

JPY:  Retail Sales y/y    

GBP: Net Lending to Individuals m/m  

EUR: No data today    

USD: FOMC statement, Federal Funds Rate   

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