Australian Dollar
Expected Range 0.7180 – 0.7280
The Australian dollar received a boost yesterday following a surprisingly strong jump in net exports during the first quarter of this year. Resulting in a significant trade surplus which was up 60 percent, economists have since been scrabbling the re-calibrate their growth expectations for the first three months of this year ahead of a GDP print which is scheduled for release today. Having traded as high as 0.7266 when valued against its US Counterpart late yesterday afternoon, moves towards the 0.7250 mark have proven to be short-lived. Opening stronger this morning at a rate of 0.7230 today’s session is shaping up as a big one with heightened levels of volatility expected around midday given the release of manufacturing data from China as well domestic GDP figures.
New Zealand Dollar
Expected Range 0.6720 – 0.6800
Volumes have normalised over the past 24 hours with light conditions globally greeting investors during the early parts of this week. Spending a large part of Tuesday’s session up above the 67 US Cents mark, near-term support at this level remains an important barrier should the Kiwi succeed in carving out an expansionary path. Void of any specific stimulus yesterday, the Kiwi’ strength is even more impressive given the stickiness of the world’s reserve currency. During today’s session which is likely to pivot around the release of manufacturing data from China, the New Zealand dollar opens this morning stronger as it currently buys 67.61 US Cents.
Great British Pound
Expected Range 1.9960 – 2.0080
Renewed Brexit fears have been the driving force behind the Sterling’s large sell off overnight with the Great British Pound plummeting when valued against all of its key counterparts. Following a poll which showed the “leave” vote was ahead in the EU referendum the Sterling slumped to a low of 1.4482 when valued against its US Counterpart, a staggering two and half cents below its earlier high. Still plagued by uncertainty in lead up to the June 23 vote, polling – not the fundamentals are likely to dictate price activity. Opening dramatically lower the Sterling is weaker versus both the Greenback (1.4482), the Aussie (2.0016) and the Kiwi (2.1400).
Majors
Expected Range N/A
Recording is biggest increase in more than six years during April, consumer spending figures released from the world’s largest economy comfortably exceeded expectations yesterday. Noting a significant pick in purchases across the board, indicators linked to an accelerated level of economic growth have in the short-term fed through to the pricing linked to a rate hike by the US Federal Reserve. Whilst a separate report overnight showed US Consumer Confidence declined during May overall the US dollar has remained well supported over the past 24 hours. Given the currency’s value is likely to remain closely linked to the macro backdrop as well as the Fed chatter which follows it, investors already remain mindful of Friday’s Labour market report. Higher against a basket of currencies the US dollar is stronger versus both Euro (1.1130) and the Japanese Yen (110.684).