Australian Dollar
Expected Range 0.7760 – 0.7830
Having gained a staggering 14.5 percent since the Australian dollar hit a low of 0.6824 back in January, values have oscillated at levels close to 78 US Cents mark for much of the past 24 hours, opening this morning virtually unchanged at a rate of 0.7789 when valued against its US Counterpart. Whist domestic data flows were non-existent yesterday, the Australian dollar’s value has been supported mainly by a 4 percent rise in the price of crude oil overnight as well as a stagnant Greenback which appreciated by a mere 0.2 percent. In what’s shaping up as another relatively quiet day of trade an NAB business confidence survey is the only domestic highlight ahead of an ECB monetary policy meeting this evening.
New Zealand Dollar
Expected Range 0.6930 – 0.7020
Rallying to its highest level since June last year the New Zealand dollar touched a late session high of 0.7048 when valued against its US Counterpart. Gaining some solid momentum the global risk backdrop has been broadly supportive of commodity and growth linked currencies this week as oil recorded some strong gains after a report showed a smaller than expected build up in US inventories. Proving to be a story of two halves however the Kiwi opens this morning half a cent lower at a rate of 0.6973, overtaken by a stronger Greenback amid some signs of profit taking up above the 70 US Cents handle. With no major events scheduled for Asia today resistance levels remain sturdy initially at the 0.7000 mark.
Great British Pound
Expected Range 1.8310 – 1.8440
In a further sign that Britain’s economy had lost momentum during the first quarter of this year, employment figures for the month of March have fallen short of expectation. Whilst the official unemployment rate remained steady at 5.1 percent, of more concern was the fact employers added only 6700 new jobs to the labour market last month whilst an index of average hourly earnings rose by 1.8 percent, versus an expected rise of 2.1 percent. Losing significant ground when valued against its US Counterpart the Great British Pound opens 0.45 percent lower at a rate of 1.4330. Meanwhile versus the Aussie (1.8377) the Sterling is also weaker, stronger however against the Kiwi (2.0535).
Majors
Expected Range N/A
Having recorded loses worth 0.6 percent earlier in the week, the US Dollar Spot Index; a measure of the world’s reserve currency versus a basket of its major counterparties gained 0.2 percent overnight. Motivating investors to buy the Greenback US home sales rebounded more than expected in March as supply improved, suggesting the housing recovery remains firmly intact. Whilst further macro developments from the US tonight are likely to provide direction for the US dollar, so too will the European Central Bank who are scheduled to meet to discuss existing monetary policy settings. Keeping in mind expectations surrounding further easing remain low the potential for dovish rhetoric has investors concerned such language could weigh heavily on the euro in the near-term. Coming off a one week high against the dollar, the euro opens lower this morning at a rate of 1.1296. In other moves the Greenback hit a two-week high versus the Yen which currently swaps hands at a rate of 109.834.