Australian Dollar:
It’s been a very subdued 24 hour window for the Australian dollar which has traded in a tight range when valued against its US Counterpart. With a low of 0.7803 being countered by a high of 0.7839 a US public holiday mixed with a light economic docket locally has offered up very little for investors during the early parts of this week. Opening this morning virtually unchanged at 0.7823 US Consumer confidence numbers will be closely scrutinized as policy makers continue to look towards broader signs of economic health outside of labour market improvements, as the world’s largest economy relies heavily upon confidence to drive spending and ultimately growth.
We expect a range today of 0.7780 – 0.7860
New Zealand Dollar:
The New Zealand dollar opens this morning little changed at a rate of 0.7308 when valued against its US Counterpart as broader currency markets encountered lower volumes given US markets were closed for the Memorial Day holiday. Drifting between a 30 basis point range investors are looking towards New Zealand’s latest trade data this morning in which its expected the monthly trade surplus to have narrowed to $100 million in April from $631 million in March. Eyeing interim support at the 73 US cents level a handful of data releases from the United States this evening also threaten to be notable dollar drivers as a normality returns over the coming 24 hour window
We expect a range today of 0.7270 – 0.7350
Great British Pound:
European shares fell on Monday amid ongoing concerns over Greece’s debt problems whilst poor election results in Spain also weighed heavily on broader sentiment. During a flat session starved of any economic developments the Great British Pound remained uninspired, dwindling between a range of 1.5456-1.5507 when valued against its US Counterpart. Opening at very familiar level this morning the Sterling is steady when valued against the US dollar (1.5468), the Aussie (1.9769) and the Kiwi (2.1158).
We expect a range today of 1.9720 – 1.9820
Majors:
Global stocks finished Monday mostly higher as major markets including Wall Street, London and Hong Kong remained closed for holidays. Leaving investors to further digest Friday’s US inflation report which showed the world’s largest economy is improving, more broadly US dollar strength will likely be tied closely to inflation expectations and outcomes over the coming quarter as policy makers have re-iterated their pledge to raise rates before years end. During a flat start to the new week, the Greenback has consolidated its gains maintaining a value above the 1.21 mark when valued against the Japanese Yen. In other moves the 18-nation Euro has come under further selling pressures as unfavourable headlines from Greece continue to cast fresh doubt over their ability to make new reforms whilst honouring debt obligations by June 5. The Euro is lower this morning at a rate of 1.0975
Data releases
AUD: No data today
NZD: Trade Balance
JPY: No data today
GBP: CBI Realized sales
EUR: No data today
USD: Core Durable Goods Orders m/m, CB Consumer Confidence, New Home Sales, FOMC Member Fischer Speaks