Australian Dollar:
The Australian Dollar has edged higher throughout trade yesterday and opens this morning valued at 77.59 US cents. With an empty local economic docket yesterday the higher yielding currency took direction from data announced in overseas markets. US capacity utilization and industrial production numbers that trailed forecasts saw Greenback weakness push the AUD/USD to overnight highs of 0.7777. Trader focus today will turn to the RBA Monetary Policy Meeting Minutes being released that will detail the Reserve Banks perception of local economic conditions which influenced their decision to keep interest rates on hold earlier in the month.
We expect a range today of AUD/USD 0.7720 – 0.7800
New Zealand Dollar:
The NZ Dollar struggled to break free of recent ranges over the past session as the week begun with no domestic data being scheduled for release. Intraday lows of NZD/USD 0.6956 were countered by overnight highs of 0.7009 due to US dollar weakness, and the Kiwi commences trade this morning only a shade higher at 0.6996. With local economic announcements lacking again the NZD is expected to experience limited volatility today. US building permits and housing start results set for release later in the evening may provide some direction for the NZD overnight, with tomorrow’s dairy auction being anxiously awaited by investors to see if weak milk prices are set to continue.
Great British Pound:
The pound sterling has experienced a relatively lacklustre trading session yesterday as house price data released locally failed to spur any GBP price action. The Cable did however accelerate overnight as soft US economic numbers were released which resulted in the GBP/USD opening higher today at 1.5598. The Pound Sterling also starts the day at 2.0076 and 2.2277 when compared with its Australian and New Zealand counterparts respectively. On the cards today there is inflationary data for May being released, and with expectations at a 0.1% increase compared to the previous month’s result being a 0.1% decrease, a positive report here may show a strengthening UK economy recovering in line with expectations.
We expect a range today of GBP/AUD 2.0040 – 2.0120
Majors:
The EUR/USD opens slightly higher today at 1.1279 as weak numbers were released from the US overnight indicating that the change in the value of output produced by manufactures, mine, and utilities reduced during the month of May by 0.2%. Additional US reports outlined that that available industrial resources being utilized from April to May had also fallen. Although the EUR/USD has seen a slight improvement over the last trade session due to Greenback weakness, concerns over discussion between Greece and their creditors is definitely at the forefront of traders’ minds. With talks seemingly not progressing at all, there are fears that the creditors will give Greece a take it or leave it deal at this Thursdays upcoming Eurogroup meeting, which heightens distresses for the possibility of Greece’s exit from the Euro.
Data releases:
AUD: RBA Assist Gov Debelle Speaks, Monetary Policy Meeting Minutes, New Motor Vehicle Sales m/m
CAD: Foreign Securities Purchases
CHF: SECO Economic Forecasts
EUR: German Final CPI m/m, European Court of Justice Ruling, German, ZEW Economic Sentiment, ZEW Economic Sentiment, Employment Change q/q
GBP: CPI y/y, PPI Input m/m, RPI y/y, Core CPI y/y, HPI y/y, PPI Output m/m, CB Leading Index
USD: Building Permits, Housing Starts