Australian Dollar
Expected Range 0.7150 – 0.7250
The Australian Dollar has remained above 72 cents against the USD after reaching intraday highs of 0.7257 the Australian Dollar pulled back late in trade to sit at 0.7216 this morning as traders start to take profits after recent gains against the Dollar and a weaker oil price. Oil prices have fallen following a continued oversupply of oil in the market and rumours of an agreement to slow production seeming some way off. The Australian Dollars’ good run against the Great British Pound has continued and we are currently sitting at levels not seen since May 2015. Locally we have data out 11:30 Sydney time namely the Wage Price Index q/q and the Construction Work Done q/q.
New Zealand Dollar
Expected Range 0.6600 – 0.6750
The New Zealand dollar was unable to maintain Monday’s levels and today finds itself opening this morning at 0.6667. With no data out locally on Tuesday the NZD was left to external pressures for direction. In the US a surprising rise in existing home sales and a drop in oil price pushing the NZD down below the 67 cent. Once again there is no data out locally on Wednesday to the market will once again be looking to overseas markets for direction.
Great British Pound
Expected Range 1.9400 – 1.9550
The Great British Pound has hit 7 year low against the USD overnight currently sitting at 1.4012. As the campaigning around whether or not the UK should leave the Eurozone starts to move into full swing. The uncertainty has seen the market move away from the GBP. The debate surrounding the future of the country will likely continue for the foreseeable future and as a result the GBP will have continued uncertainty hanging over it. The GBP also lost ground against the AUD (1.9430) and the NZD (2.1050). With limited data out today the main talking points will focus once again on the upcoming referendum.
Majors
Expected Range N/A
A day of limited data saw limited movement across most of the major currencies yesterday. The main data releases came from the US where Consumer confidence came in below expectations and existing homes sales came in better than expectation. While the Consumer Confidence came in below expectations it can get a lot worse so leaves the US with moderate levels of confidence. The existing home sales data now sits at a 6 month high giving further hope that the US economy is finding its feet despite global weakness.