Australian Dollar
Expected Range 0.7480– 0.7650
The Australian Dollar edged lower through trade on Wednesday slipping back through the 0.76 handle as investors backstopped the Greenbacks precipitous slide ahead of Friday’s non-farm payroll report. Having largely shrugged off the effects of Tuesday’s RBA rate cut the AUD has found strong support in a weakening USD and increased carry trade demand following Friday’s BoJ stimulus announcement. Touching intraday lows at 0.7570 the Aussie maintained a relatively tight trading band. Investors appear reluctant to push the AUD through resistance at 0.7650 while a 2016 Federal Reserve monetary policy adjustment and a third RBA rate reduction remain on the table. Attentions today turn to domestic Retail Sales data for direction ahead of tomorrow’s all-important U. S labour market print.
New Zealand Dollar
Expected Range 0.7050 – 0.7250
The New Zealand Dollar suffered a heavy sell off through trade on Wednesday relinquishing 100 points to its US counterpart and touching intraday lows at 0.7141. With little domestic data on hand to drive direction the Kiwi largely shrugged off an increase across global dairy prices steamrolling downward as investor’s square positions ahead of Friday’s non-farm payroll report. Attentions now turn to offshore data sets with the Bank of England dominating Central bank chatter and U.S unemployment claims headlining for Tomorrow’s Non-Farm Payroll print.
Great British Pound
Expected Range 1.7050 – 1.7850
The Great British Pound moved lower through trade on Wednesday breaking below 1.3350 as investors position themselves ahead of today’s MPC and BoE monetary policy announcement. Investors and analyst anticipate the board will elect to cut interest rates signalling a move away from the recently accommodative but neutral policy platform. After UK business activity suffered its largest ever fall throughout July markets almost expect today’s decision as a foregone conclusion. Testing moves below 1.33 Sterling remains under pressure and could well extend losses suffered since the historic Brexit vote.
Majors
Expected Range N/A
The U.S Dollar advanced against a basket of currency counterparts through trade on Wednesday recouping some of the losses suffered throughout the last seven days. Having touched six week lows earlier this week the Greenback rebounded as investors stepped in to defend the currency and square positions ahead of Friday’s all-important non-farm payroll and labour market reports. The USD edged back through 101.00 JPY while the Euro gave up recent gains slipping back through 1.1150 helping the dollar index push upward to touch intraday highs at 95.594. The Dollar found support against the Yen on suggestions further monetary stimulus would be introduced before the year was out while the country’s top currency diplomat, Mastsugu Asakawa, added weight to recent jawboning calling for a lower Yen in rebuilding the economy. Attentions now turn to Friday’s non-farm payroll print, however with just two monthly job’s reports available before the Fed’s next meeting in September a particularly strong print will be needed to sway analysts positions and expectations for a 2nd U.S interest rate adjustment.