Australian Dollar
Expected Range 0.7540 – 0.7640
The Australian Dollar performed well against its US counterpart on Friday up almost a cent on the day to finish the week buying 75.95 US cents. The rise in the AUD was mainly driven by a weaker than expected GDP data which came in at 1.2% against expectations of 2.6%. The weaker than expected results further reduces a possible rate hike in the US in September which hurt the value of the USD. This week is shaping up to be a pretty big data week for the AUD including the trade balance and interest rate decision on Tuesday and the retail sales numbers out on Thursday. Looking at today the AUD may see some movement off the back of the Chinese Manufacturing PMI release this morning.
New Zealand Dollar
Expected Range 0.7140 – 0.7260
The New Zealand dollar had a strong finish to the week buoyed by disappointing GDP data out of the US. The USD performed poorly against all of its major counterparties and the NZD was no exception and was able to briefly push through 0.72 against the USD. It was a good week for the NZD after starting the week be 70 cents it was able to retrace most of the ground lost from the week before. No data to be released locally today but tomorrow will see inflation expectations and the Global Dairy Trade price index released. The NZD is currently buying 0.7198 USD.
Great British Pound
Expected Range 1.7300 – 1.7500
The Pound held steady against the US Dollar on Friday despite a dismal reading in US GDP holding with the pair trading between 1.3150 and 1.3225 for the majority of the day. This week’s attentions is squarely on Thursdays Bank of England Monetary Policy meeting with the markets expecting a cut in the official cash rate from 0.50% to 0.25% and potential increase of GBP 50 billion in the Asset Purchasing Facility. Along with Monday’s Manufacturing PMI and Wednesday Services PMI, the Pound is expected to be volatile. In Sydney, Sterling opens at 1.74 and 1.83 against the Australian and New Zealand Dollar.
Majors
Expected Range N/A
The US GDP data missed expectations on Friday and the USD lost value across the board as a result. The biggest beneficiary which was the JPY which was the best performing major currency on Friday. The GDP result missing its mark has dampened expectations of a rate hike in September and the number means that the US is in its weakest start to the year since 2011. The Euro also performed well against the USD on Friday and it will aim to continue its good run with a raft of Manufacturing PMI data out today.