Australian Dollar
Expected Range 0.7550 – 0.7630
Despite a disappointing CPI read from China early in the piece yesterday, in most part investors have done well to shrug off initial signs of weakness. Trading to an overnight high of 0.7629 when valued against its US Counterpart, a weaker Greenback and a strong performance across the commodities space has provided plenty of buying opportunities. Ahead of a busy week for currency observers a handful of key data prints from China still lie on the horizon as does a domestic labour market report which is expected to show solid jobs gains for the month of March. Opening around half a cent stronger this morning the Australian dollar currently buys 75.94 US Cents.
New Zealand Dollar
Expected Range 0.6820 – 0.6910
The New Zealand dollar touched its highest point in over week when valued against its US Counterpart overnight. Given its close ties to the commodities complex, strong gains across precious and industrial metals as well as gasoline and oil set the platform for the Kiwi which was also further assisted by a notably lower US dollar. Running into resistance at a rate of 0.6878 when valued against the Greenback, the Kiwi opens this morning in a stronger position as it currently swaps hands at a rate 0.6857. Eyeing potential market movers this evening, the IMF is expected to hand down updated forecasts on its global economic outlook tonight, with the view global growth this year will clearly struggle to achieve a growth rate of 3.4 percent.
Great British Pound
Expected Range 1.8680 – 1.8790
The Great British Pound has raced ahead over the past 24 hours, advancing by close to one percent when valued against its US Counterpart. Running into resistance at 1.4286, gains were made even more impressive in the absence of any related economic data whilst some large scale asset sales (GBP buyers), may have potentially provided a strong undercurrent for Britain’s currency. Opening stronger versus the Greenback this morning at a rate of 1.4238, the Sterling opens stronger versus both the Aussie (1.8745) and the Kiwi (2.0756). Of importance tonight investors will be eyeing March’s CPI print as the UK continues to be dogged by record low levels of inflation.
Majors
Expected Range N/A
The US dollar Index a measure of the greenback versus other key currencies declined during overnight trade as investors once again wound back their expectations surrounding future interest rate adjustments. With the price of oil rising to its highest level in four-months, overall risk flows have favoured growth and commodity backed currencies overnight with the US dollar as a result suffering given the positive risk backdrop. In the absence of any data flows from the world’s largest markets investors in the very near term will be looking towards the IMF’s updated global growth outlook amid ongoing concerns that sluggish growth and extremely loose monetary settings have become too far entrenched across the world. Beyond the likelihood of a downgraded forecast tonight, the week ahead remains littered with potential curve balls as investors look towards several macro releases from the US and China. Weaker across the board the Greenback opens lower versus the both euro (1.1409) and the Yen (107.948).