Australian Dollar
Expected Range 0.7520 – 0.7690
The Australian dollar crept higher through trade on Tuesday buoyed by upbeat comments from RBA Governor Glenn Stevens. Edging back above 0.76 the AUD touched intraday highs at 0.7642. Having lost 70 points in the panic that followed the horrendous terror attacks in Brussels the Aussie rebounded strongly as markets and trading calmed, recouping the immediate losses and bouncing higher. The AUD continues to enjoy the benefits of a shift in momentum and sentiment and what was previously a point of key technical resistance at 0.74 has now become a marker of support. If the Aussie can hold on above 0.74 there is certainly room for a protracted short term bullish run. With attentions this week turning to FOMC and Fed officials and a spattering of U.S macroeconomic indicators a close above 0.77 could foster another upward rally toward 0.78 and 0.7850. .
New Zealand Dollar
Expected Range 0.6675 – 0.6820
The New Zealand dollar edged marginally lower through trade on Tuesday as investors preferred safe haven assets in the aftermath of the Brussels terror attacks. With traditional market indicators forgotten the Kiwi plunged to intraday lows at 0.6719 before trading conditions calmed and the unit rebounded back through 0.6750 maintaining the recovery to open this morning buying 0.6751 U.S cents. Attentions today will again be dominated by offshore stimuli ahead of tomorrow’s all important trade balance report.
Great British Pound
Expected Range 1.8500 – 1.9000
The Great British Pound plunged lower through trade on Tuesday losing 200 points in the wake of the Belgian terror attacks. Sterling was driven through 1.43 to intraday lows at 1.4200 after 3 separate bomb blasts across Brussels rocked financial markets. Investors quickly reversed GBP positions on fears the attacks would only heighten calls for Britain to leave the EU. The June 23 referendum is increasingly turning into a debate on immigration and Tuesday’s attacks do little to support those proponents wishing to remain within the EU. With little headline macroeconomic data available today direction will come from continued social and political fallout following the attacks.
Majors
Expected Range N/A
The U.S Dollar edged higher through trade on Tuesday as investors looked to haven assets in the aftermath of terror attacks in Brussels. Markets sold down Euro and GBP seeking the haven status of the JPY, CHF and USD following 3 separate bomb blasts across the Belgian and European capital, leaving at least 34 dead and over 200 wounded. Risk sentiment all but evaporated as the heinous events overshadowed macroeconomic news and the Euro fell through 1.12, a point of key technical support, before markets stepped in to defend the 19 nation shared unit forcing the currency higher to an intraday close at 1.1220. Should investors continue to defend 1.12 as a point of technical support there is room for a short term EUR/USD bullish turn with runs toward resistance at 1.1376 and 1.1495. The Yen rallied to touch session highs at 111.40 in the immediate panic following the attack but a trading conditions calmed the Greenback recouped early losses and moved back through 112 to touch intraday day highs at 112.50. With little additional data available to spur direction through trade into the long weekend markets will be keenly focused on a few prized macroeconomic markers. German Consumer Confidence and the ECB Targeted LTRO auction results drive European direction while GDP and durable goods orders fuel U.S markets.