Australian Dollar
Expected Range 0.7240 – 0.7330
The Australian dollar did well yesterday to shrug off falling iron ore prices amid a disappointing set of data prints from China over the weekend. With the Australian share market advancing despite the soft back drop the Australian dollar followed suit rising to a 24 high of 0.7308 when valued against its US Counterpart, half of one cent above its weekly open. Failing to gain any momentum up above the 73 US Cents mark, today’s session is shaping up to be an important one as investors await the release of minutes from the Reserve Banks most recent monetary policy meeting. Marginally stronger this morning the Australian dollar currently buys 72.86 US Cents.
New Zealand Dollar
Expected Range 0.6740 – 0.6840
In what’s been a relatively uneventful start to the new week investors have been forced to absorb a stronger US dollar amid ongoing signs of economic weakness flowing from New Zealand’s largest trading partner. Whilst generally hamstrung over the past 24 hours the New Zealand dollar has managed to notch up around 30 basis points worth of gains versus the Greenback, reaching eventual highs of 0.6809. Proving to be an extremely important data point for policy makers a quarterly read on inflation expectations is earmarked as today’s key market event. Opening stronger this morning the New Zealand dollar currently swaps hands at a rate of 0.6787.
Great British Pound
Expected Range 1.9700 – 1.9820
The Great British Pound drifted between a low of 1.4334 and a high of 1.4414 when valued against its US Counterpart on Monday, moves more indicative of risk flows ahead of any fundamental shift in the expectations which surround the two currencies. In a generally lacklustre session for the Sterling investors have opted to remain on the sidelines as they look towards the UK’s most important data print tonight where an annualised CPI result of 0.5 percent is expected. Opening stronger versus the Greenback at a rate of 1.4400 the Great British Pound is flat versus the Kiwi (2.1193) whilst lower versus the Aussie (1.9753).
Majors
Expected Range N/A
Driving the price of oil to a six month high overnight worries over global supply outages sent the price of crude higher by 2.4 percent. Whilst shares on Wall Street closed marginally higher the dollar weakened versus a host of its major rivals after Federal Reserve data showed manufacturing activity in the New York area declined during the month of April. Acknowledging that broader declines have been constrained ahead of a key CPI print this evening, additional reports on housing, building and Industrial production has the approaching 24 hour window littered with market moving potential. In what’s likely to be a cautious build up, the fundamental macro picture within the United States is set to remain firmly the focus during the week ahead. Steady against the euro this morning at a 1.1319 the Greenback is stronger versus the Yen (109.026).