Australian Dollar
Expected Range 0.7410 – 0.7510
With a limited amount of local data out locally the Australian Dollar did perform well finishing the week buying 74.97 US cents. The calmer waters following last week’s Brexit results has given the AUD some support briefly breaking through 0.75 against the USD on Friday. The Federal Elections on the weekend ended up being a lot tighter than many expected and as a result at the time of writing the winner is still unclear with no party able to form a clear majority. As a result of the uncertainty we open Monday at 0.7453. The movement in the currency and the unexpected world events will be closely looked at tomorrow during the RBA’s meeting to determine Interest Rates.
New Zealand Dollar
Expected Range 0.7115 – 0.7225
The New Zealand finished the week almost 1% up from the weeks open as the markets started to take stock following the Brexit decision the week before. The initial shock saw a lot of money move toward the USD and as markets digested the idea of the UK leaving the Eurozone we have seen money start to flow the other way combined with traders closing positions in the lead up to the end of the quarter. The NZD has a fairly quiet week ahead with the Global Dairy Trade Index to be released on Wednesday which acts as a leading indicator of the nation’s trade balance. The NZD is currently buying 71.73 US cents.
Great British Pound
Expected Range 1.7500 – 1.8000
With global markets still optimistic form Thursday’s comments by Bank of England’s Governor Mark Carney that a summer stimulus injection could be on the cards the Pound continued to keep pace with the US and Japanese Yen moving up against the paid during Friday’s trade. With the UK’s exit from the European Union far from being sorted and the political infighting becoming more intense on both the Conservative and Labour sides, the uncertainty surrounding the Pound, Europe and the direction of global economy will continue to be at the forefront of peoples mind as we start the week. Relief might come today as the US celebrates the 04th July with flows expected to be fairly thin. Against the Australian and New Zealand Dollar the Pound opens in Sydney at 1.7776 and 1.8467 respectively.
Majors
Expected Range N/A
After a week dominated by talk around Brexit and what it means for the global economy has seen talk of potential stimulus packages from the European central bank in an effort to minimise the impact of the UK leaving the trading bloc. Friday saw a number of manufacturing data points released in Europe including the German and French who both met expectations which help support the Euro during Friday’s trade. 4th of July celebrations in the US will see a reduced trading day.