Australian Dollar
Expected Range 0.7640 – 0.7740
The Australian dollar continued to stretch its legs yesterday, advancing when valued against a subdued Greenback. Providing ample intraday support a National Australia Bank Survey showed business conditions jumped four points during March, accelerating to 12, the highest level recorded in the post GFC era. Hitting an overnight high of 0.7689 strong gains again across the commodities sector provided investors with an even greater incentive for investors as the Australian dollar opens this morning more than one percent higher as it currently buying 76.84 US Cents. In what’s set to dominate the limelight today, market participants will be looking towards Trade Data from China ahead of Retail Sales data from the United States
New Zealand Dollar
Expected Range 0.6850 – 0.6950
Despite a relatively slow start the New Zealand dollar has managed to post some impressive gains when valued against its US Counterpart overnight. Reaching an eventual high of 0.6925 the Kiwi’s rally through the psychological 69 US Cents handle has been assisted greatly by the ongoing weakness which surrounds the world’s reserve currency. With improved demand across the energy and resources market also providing some support, direction through to the end of the week will likely be driven mainly by data from the US and China ahead of the positive risk and commodities backdrop which is currently pushing values higher. Opening in a stronger position this morning the New Zealand dollar currently buys 69.20 US Cents.
Great British Pound
Expected Range 1.8510 – 1.8620
The Great British Pound briefly extended through the 1.4300 mark when valued against its US Counterpart yesterday, a strong performance underpinned by a better than expected inflation result. With the Consumer Price Index rising by 0.5 percent in the year to March versus a previously estimated number of 0.3 percent such results bold well for investors looking for some accelerated rate activity by the Bank of the England. Whilst well off overnight highs of 1.4347 the Sterling still opens comfortably stronger this morning at it currently swaps hands at a rate of 1.4271. Meanwhile in other moves the Sterling is lower against both the Aussie (1.8566) and the Kiwi (2.0612).
Majors
Expected Range N/A
Stocks on Wall Street advanced by one percent during overnight trade with surging energy and rising oil prices the main driving force. With Oil advancing to a five month high, demand has been spurred by a report overnight which revealed top producers Russia and Saudi Arabia had agreed to freeze output ahead of Sunday’s planned meeting. In other flows, in an announcement many saw coming the International Monetary Fund downgraded its global growth forecast for the fourth time in 12 months overnight, saying the global economy would grow by 3.2 percent this year when compared to its previous estimate of 3.4 percent. In an environment conducive to enhanced risk flows the world’s reserve currency has been broadly flat over the past 24 hours with currencies linked to commodity exportation generally favoured as were several pairs within the emerging market space. Lower against the both the Euro (1.1383) and the Japanese Yen (108.553) this morning, core retail sales and PPI numbers tonight will be closely watched.