Australian Dollar
Expected Range 0.7240 – 0.7320
The Australian dollar enjoyed an impressive upward run when valued against its US Counterpart yesterday after figures showed Australia’s economy expanded at a faster than expected pace during the final three months of last year. In light of a Gross Domestic Product read which advanced by 0.6 percent, record low interest rates have fuelled significant household spending and dwelling construction, to a large extent outpacing falls across key export markets. Reaching an eventual high of 0.7299 the Australian dollar has surged over the past three days of trade, gaining a staggering 6 percent since dropping to its lowest point since 2009 in January. Maintaining the focus on domestic flows today investors will be looking towards February trade numbers as the Aussie opens notably stronger at a rate of 0.7291.
New Zealand Dollar
Expected Range 0.6620 – 0.6720
Initially unresponsive following a largely successful dairy trade auction the New Zealand dollar has since strengthened when valued against the worlds reserve currency. Doing well in the context of a stronger Greenback, the Kiwi has advanced over the past 24 hours assisted by a recovery in the price of crude along with notably improved risk flows. Reaching a late session high of 0.6675 the New Zealand dollar has consolidated those gains, opening half a cent higher at a rate of 0.6668. With the end of the week shaping up as window most likely to be dominated by US macro flows, Friday nights non-farm payroll report if positive has the potential to spur an even greater interest in the US Dollar.
Great British Pound
Expected Range 1.9240 – 1.9350
In what’s been an unusual session for the Great British Pound a report yesterday showed the construction industry put in its worst performance for 10 months in February, recording its biggest slowdown in housing construction since the summer of 2013. Far from discounting the negative implications on growth, the Sterling’s performance over the past 24 hours has been somewhat remarkable, not only holding up at a level above the 1.40 mark when valued against the Greenback, managing to rally to an eventual high of 1.4093. Opening stronger versus the Greenback at 1.4077 the Sterling is stronger also versus the New Zealand dollar (2.1089) whilst lower against the Australian dollar (1.9293).
Majors
Expected Range N/A
Wall St edged lower during overnight trade in what proved to be a relatively muted session. Following three consecutive days’ worth of gains, the slight pull back wasn’t necessarily indicative of broader sentiment flows as the economic outlook from the world’s largest economy continued to improve. In a report released overnight the US private sector added more jobs than expected in February as investors look towards the prospect of higher rates from the US Federal Reserve. Supportive of a stronger US Dollar, the Greenback opens little changed versus the euro (1.0866) whilst marginally lower versus the Yen (113.44). In what’s been a remarkable turnaround in fortunes for the US dollar since the huge levels of volatility witnessed during the early parts of this year, the absence of any flair ups from China has greatly assisted its plight in recapturing the 12 year highs seen late last year. On the economic docket this evening a non-manufacturing PMI read as well as weekly unemployment claims will the highlight of the US session as investors look already towards Friday’s labour market report.