Australian Dollar
Expected Range 0.7180 – 0.7280
The Australian Dollar performed well yesterday despite the Reserve Bank of Australia cutting interest to a record low and an expanding trade deficit number. The Reserve Bank announced that it was going to cut interest rates to 1.5% along with market expectations. After making an initially losing 40 points straight after the decision the AUD was able to reverse this and then over the course of the evening was able to push through hitting 2 week highs of 0.7637. Earlier in the morning the trade balance number was released in Australia coming in at -3.2 Billion against expectation of -2.0 Billion. The AUD is currently buying 76.02 US cents.
New Zealand Dollar
Expected Range 0.7180 – 0.7280
The Pound surged versus the US Dollar with an upbeat reading in Construction PMI coming in at 45.9 compared to a forecast of 44.2. Despite the reading indicating a contraction the Pound rallied from 1.3177 to an intraday high of 1.3350 against its Trans-Atlantic counterpart. This coupled with a weaker reading in US CPI helped the Pound appreciate against a basket of currencies. All eyes are now firmly on the Bank of England MPC meeting Thursday with many market participants expecting a cut in the official interest from 0.5% to 0.25% and a potential for an increase in the current Asset Purchase Facility. The Pound is changing hands at 1.7530 against the Australian Dollar and 1.8420 against the New Zealand Dollar.
Great British Pound
Expected Range 1.7340 – 1.7640
The Pound surged versus the US Dollar with an upbeat reading in Construction PMI coming in at 45.9 compared to a forecast of 44.2. Despite the reading indicating a contraction the Pound rallied from 1.3177 to an intraday high of 1.3350 against its Trans-Atlantic counterpart. This coupled with a weaker reading in US CPI helped the Pound appreciate against a basket of currencies. All eyes are now firmly on the Bank of England MPC meeting Thursday with many market participants expecting a cut in the official interest from 0.5% to 0.25% and a potential for an increase in the current Asset Purchase Facility. The Pound is changing hands at 1.7530 against the Australian Dollar and 1.8420 against the New Zealand Dollar.
Majors
Expected Range N/A
The USD had a disappointing day after the inflation number came out flat with a small growth of 0.1%. After a disappointing GDP number last week the soft inflation data would make it seem like any rate increase by the Federal Reserve at the next meeting is unlikely. In Japan yesterday cabinet approved the 28 Trillion JPY stimulus package of which 7.5 Trillion is set aside for central and local government spending starting this fiscal year.