Australian Dollar
Expected Range 0.7420 – 0.7520
Another quiet day for the Australian Dollar which opens this morning just 13 points above Mondays open. The market has started the week quite subdued with a few key market indicators being released later in the week. The previous release of the quarterly inflation data which was weaker than expected was one of the key reasons behind the RBA’s decision to drop interest rates in May so the next release out tomorrow will be keenly watched. If the CPI number fails to meet expectations then the RBA may decide to move on interest rates in their meeting next week. The other piece of news is the Federal Reserve’s decision on interest rates tomorrow night with the market currently expecting no change to the rates if they decide to raise rates then that will have a knock on effect on the AUD. The AUD is currently buying 0.7467 USD.
New Zealand Dollar
Expected Range 0.6940 – 0.7040
Following a similar pattern to Friday the NZD spent most of Monday trying to push through 70 cents against the USD. It was briefly able to do so hitting an intraday high of 0.7014 but that was short lived and the NZD quickly moved below the 70 cent line. The New Zealand Trade Balance data will be released this morning with the market looking for an improving deficit number to help lend support to the NZD. The NZD is currently buying 0.6995 USD.
Great British Pound
Expected Range 1.7380 – 1.7780
The Pound move sideways versus the US Dollar in offshore trade moving between 1.3080 and 1.3150 as market participants nervously await Thursdays’ decision from the US Federal Reserve in relation to interest rates. A better than expected reading in UK CBI Industrial Order Expectations (survey of expected future volumes in manufacturing) added some support to the Pound during day trading and that coupled with comments from the G20 Finance Ministers about the effects of the Brexit exit on the global currency and future growth capped any gains to the upside. Against the Australian and New Zealand Dollar, the Sterling is changing hands at 1.7575 and 1.8785 respectively.
Majors
Expected Range N/A
The G20 meeting came to a conclusion yesterday with representatives from the world’s biggest and richest economies came together to discuss the global economy. The outcome was a renewed agreement to focus on global growth. The focus for the group however has moved away from the idea of printing money to stimulate growth and onto productivity, and ensuring robust tax systems. The Bank of Japan Governor Kuroda has indicated that more stimulus is possible in the near future but has watered down expectations on the extent of the package that may come.