Australian Dollar
Expected Range 0.7220 – 0.7260
The Australian dollar has done well to consolidate its position up above the 72 US Cents mark over the past 24 hours. Despite trading between a tight 40 basis point range, overall the Aussie has been held in good stead this week, unaffected overnight by the US dollar spot index which rose by 0.2 percent. Whilst macro developments from the United States dominated light flows overnight, AUD moves through to week’s end are likely to be directionless as investors look to wind down for the year. Opening stronger this morning at a rate of 0.7240, the New Year is likely to bring a renewed focus to growth plans from China as well as the ever evolving monetary environment where the RBA currently sits third in line behind the US Fed and Bank of England to raise rates in 2016.
New Zealand Dollar
Expected Range 0.6770 – 0.6830
The New Zealand dollar has really struggled to kick ahead over the past 24 hours, running out of steam on attempted moves beyond the important 68 US Cents mark. Whilst US and European stock markets both posted strong gains, the strong bounce also in the price of oil over the past several days has to date only provided a mild boost to broader measures of sentiment. Opening marginally lower at a rate of 0.6801 when valued against its US Counterpart, the Kiwi trades only 0.3 percent away from its two month high as global markets look to wind down for the Christmas break this afternoon.
Great British Pound
Expected Range 2.0460 – 2.0580
UK growth numbers released overnight showed Britain’s economy expanded by 0.4 percent during the third quarter of this year. Matching its lowest rate since November 2012, last night’s result fell just below forecast which had estimated an expansion of 0.5 percent. Likely to push back even further the timeframe surrounding a rate rise, news flows overnight weren’t all bad following another report which showed Britain’s current account deficit fell during November, accountable for a mildly smaller portion of the nation’s GDP. Opening stronger versus the Greenback (1.4871) and the Kiwi (2.1868) it’s been a mixed session for the Sterling which is weaker against the Aussie (2.0532).
Majors
Expected Range N/A
US Treasury yields rose as did the US Dollar during overnight trade as economic data, whilst mixed supported the US Federal Reserve’s decisions to raise borrowing costs last week. Whilst a gauge of business investment fell in November along with a revised downward adjustment also for October a separate report showed personal income rose for an eighth straight month whilst a measure of consumer confidence rose to a five month high. In line with notable improvements in confidence and spending power, hopes have been raised that this should lead to improved consumption during the early parts of 2016. In what’s proving to be a positive trading window in the lead up to Christmas, major stock indexes across the US and Europe remain set to finish the week stronger recording four consecutive days’ worth of gains. In currency moves the USD/JPY opens lower at (120.843) as does EUR/USD (1.0915).