Australian Dollar
Expected Range 0.7290 – 0.7380
The Australian dollar leaped forward late yesterday morning following the release of minutes from the Reserve Bank’s April meeting. Suggesting there was a greater debate over cutting interest rates than many had first thought, overall expectations surrounding a follow-up cut have dampened. Heightening the focus on Australia’s next major CPI read, July’s quarterly print is already being earmarked as the clincher for policy makers who will only be given further reason to loosen monetary settings in the absence of any underlying price pressures. Having traded to a 24 hour high of 0.7364 when valued against its US Counterpart the Australian dollar has managed to hold onto most of those gains, opening stronger this morning at a rate of 0.7324.
New Zealand Dollar
Expected Range 0.6770 – 0.6840
The New Zealand dollar has found has some limited support over the past 24 hours touching a mid-session high of 0.6842 when valued against its US Counterpart. Initially higher off the back of a quarterly report which detailed inflationary expectations, a raft of strong data prints from the world’s largest economy has comfortably kept any sustained rally under wraps. In what’s shaping up busy morning for market participants there has been some early support following a dairy trade auction which showed steady price growth ahead of a separate report showing the change in prices for goods purchased by manufacturers. Opening marginally stronger the New Zealand dollar currently buys 68.10 US Cents.
Great British Pound
Expected Range 1.9680 – 1.9780
During a session containing several notable price swings the Great British Pound opens overall in a stronger position this morning when valued against its US Counterpart. Trading initially higher following the latest poll which showed growing support for the UK to remain in the EU, highs up above the 1.4500 mark proved short-lived after the Consumer Price Index for April missed expectation. Opening half a cent stronger at a rate of 1.4458 when valued against the Greenback the Sterling is stronger versus the Kiwi (2.1220) whilst lower versus the Aussie (1.9736).
Majors
Expected Range N/A
Bolstering the case for a further upward move in interest rates by the US Federal Reserve, a report overnight showed US consumer prices recorded their biggest monthly increase in more than three years. Rising by 0.4 percent during the month of April, the annualised CPI level now sits at 1.1 percent. In further signs that the world’s largest economy is gaining momentum following a stagnant first quarter, figures overnight also showed that industrial production and housing starts rebounded strongly last month. Having initially traded higher when valued against a basket of currencies the Greenback’s advance has overall been limited, capped mainly by falling equity prices which contracted off the back shifting Fed expectations. In what’s likely to be an equally eventful session tonight given the release of FOMC minutes, it will interesting to note whether a serious debate for a June or July hike has already began. Opening lower versus the euro at a rate of 1.1313 the Greenback is stronger versus the Yen (109.155).