Australian Dollar:
Having started the new week at a rate of 0.7339 when valued against its US Counterpart, the Australian dollar has struggled over past 24 hours, broadly lower versus the world’s reserve currency. With the Greenback recovering to a level not seen in close one month, the Aussie fell to a low of 0.7225 following some hawkish rhetoric from a Federal Reserve member, a move further assisted by some notable falls across key commodities. Opening lower this morning at a rate of 0.7265, trade data from China along with a NAB business confidence survey promise to be front and centre during today’s session.
We expect a range today of 0.7220 – 0.7300
New Zealand Dollar:
The New Zealand dollar opens this morning under pressure when valued against its US Counterpart, following fresh concerns overnight that oils global glut may continue. In light of OPEC’s decision to keep output at current levels, falling oil and energy prices have been amplified over the past 24 hours by a rising US dollar. With broader measures of confidence also taking a hit, the New Zealand dollar has fallen from an early week high of 0.6740 when valued against its US Counterpart to a notably lower level upon open this morning. The New Zealand dollar currently buys 66.47 US Cents.
We expect a range today of 0.6610 – 0.6690
Great British Pound:
In light of Mark Carney’s testimony before the European Parliament Committee on economic and monetary affairs which offered no relevant market quotes, investors have been forced to wait until Thursday as the BOE governor delivers November’s monetary policy statement. Overshadowing any fundamentally driven plays overnight, the Great British Pound has struggled at the hands of a notably stronger greenback with the Sterling now eyeing key psychological support close to the 1.5000 handle. Opening 0.4 percent lower when valued against its US Counterpart (1.5060), the Sterling is stronger versus both the Aussie (2.0723) and the Kiwi (2.2661)
We expect a range today of 2.0650 – 2.0800
Majors:
Shares on Wall Street fell overnight as energy and raw material stocks tumbled along with oil prices which hit their lowest level most in almost seven years. Dominating forex flows over the past 24 hours, the US dollar spot Index notched up its largest appreciation in a month after Atlanta Federal Reserve President Dennis Lockhart said that the conditions for higher rates had been achieved. All but securing a Federal Reserve move in two week’s time, its likely market behaviour will become skittish in the lead to an event which hasn’t occurred since 2006. Void of significant economic flows, the euro opens lower when valued against its US Counterpart at a rate of 1.0847 whilst the US dollar opens stronger versus the Yen at 123.335.
Data releases
AUD: NAB Business Confidence
NZD: No data today
JPY: Current Account, Final GDP q/q
GBP: Manufacturing Production m/m, Halifax HPI m/m
EUR: ECOFIN Meetings
USD: No data today
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