Australian Dollar
Expected Range 0.7420 – 0.7520
In a seesawing affair the Australian dollar gyrated yesterday when valued against its US Counterpart after retail sales and trade data for the month of May both missed expectation. Trading between a low of 0.7453 and a high of 0.7544 the main event came after domestic policy makers announced that the official cash rate would be left on hold at 1.75 percent over the coming month. Whilst maintaining the status quo, in most part the markets bias for future monetary policy adjustments still remains towards the downside with many economists tipping a further revision to the cash rate by November of this year. Opening in a notably weaker position at a rate of 0.7462 further commentary is expected from the Reserve Bank of Australia today ahead of a speech by deputy governor Guy Debelle in Sydney.
New Zealand Dollar
Expected Range 0.7100 – 0.7200
The New Zealand dollar has tracked global equity markets lower over the past 24 hours with falling commodity and oil prices, along with a stronger Greenback both combining to push the Kiwi well below the 72 US Cents handle. Reaching an eventual low of 0.7139 when valued against its US Counterpart, the “risk off” shift overnight has weighed heavily on all of the growth back currencies with the Bank of England causing the greatest level of turbulence having echoed their concerns over future growth prospects. Remaining at the mercy of its global counterparts it will again be the voices of global central bank heads which drive direction this evening with the Kiwi opening lower this morning as it currently buys 71.52 US Cents.
Great British Pound
Expected Range 1.7380 – 1.7520
Falling to a fresh 31 year low yesterday the Great British was heavily sold when valued against its US Counterpart after the Bank of England warned about the growing challenges for Britain’s economy in the wake of the Brexit vote. Stating there is a material prospect that economic growth would suffer, PMI data overnight supported that view, after surveys showed growth slowed to just 0.2 percent during the second quarter, a direct result of the heightened levels of anxiety witnessed in the lead up to the Brexit Vote. Proving to be an aggressive sell off the Sterling has been hit hard over the past 24 hours briefly slumping to a low below the 1.30 mark when valued against its US Counterpart. Opening in unchartered territory this morning the Great British Pound is weaker across the board having lost ground against the Greenback (1.3022), the Aussie (1.7446) and the Kiwi (1.8200).
Majors
Expected Range N/A
Triggering an all too familiar shift back into asset classes deemed safer in nature the price of oil tumbled nearly five percent on Tuesday amid ongoing concerns Britain’s decision to leave the European Union would lead to sluggish economic results elsewhere. During a session dictated by risk flows traditional units benefitted with both the Japanese Yen and the US Dollar notably stronger versus the majority of its counterparts. In economic flows overnight new orders for US factory goods fell in May, a fall in line with expectation whilst a growing backlog of orders suggest that the worst of the manufacturing downturn is over. In what threatens to promote even more volatility across forex markets, investors are already looking towards the release of minutes from the Federal Reserve’s latest meeting to gauge the depth of Janet Yellens concerns which are plaguing the decisions of central banks globally.