Australian Dollar
Expected Range 0.7200 – 0.7800
It was a good day for the Australian Dollar which managed to move to 2 month highs against the USD to open this morning at 0.7613. There has been an increased focus on the Brexit vote in the UK as voting takes place and at the time of writing the polling booths have just closed the current expectation is that UK will vote to remain in the Eurozone however the outcome will be keenly watched. The expectations of the “Remain” outcome has seen some movement of money from the safe haven currencies into the higher yielding currencies like the AUD which has seen the AUD perform well over the last couple of days. With no data out locally expect the Brexit vote to give the AUD its direction today.
New Zealand Dollar
Expected Range 0.6700 – 0.7500
The New Zealand Dollar has hit fresh 12 month highs of 0.7296 a level not seen since May of last year. The NZD has now gained ground on the NZD for 8 days in a row as the market monitors the outcome of the Brexit vote. As market expectations have moved toward the UK remaining in the Eurozone we have seen money move into the commodity linked currency. The NZD is currently buying 72.65 US cents.
Great British Pound
Expected Range 1.9000 – 2.0200
As polling stations have just closed and the counting commences on whether the UK will remain or leave the European Union, the Pound continues to defy the odds and has rallied against a basket of currencies as optimism by the markets that the “Remain” camp will win the day. Against the USD the Pound rallied to a high of 1.4946, its highest level since 31 December 2015 as safe haven currencies took a hammering in favour of riskier trades. With the results forecast to be released midday Australian time, extreme volatility will be in play for most markets throughout the day and well into next week. Against the Australian and New Zealand Dollar, sterling opens in Sydney at 1.9400 and 2.0345 respectively.
Majors
Expected Range N/A
The US has continued its slide despite having a drop in unemployment claims and a good result in the Flash Manufacturing PMI release. The unemployment claims came in at 259 Thousand down from the expected 271 Thousand. The main story behind the fall has been that initially the uncertainty around the Brexit vote saw money move into the more safe haven currency now that the vote is upon us and the expectations are that the UK will remain we are seeing some of that money move out of the US and into the higher yielding currencies.