Australian Dollar:
The Aussie opens virtually unchanged this morning as a shortage of economic data in domestic and overseas markets yesterday produced a lacklustre trade session for the higher yielding currency. The AUD/USD fell to intraday lows of 0.7324 early in the day, however was then countered by highs of 0.7398 later in the afternoon. The Aussie maintained these levels throughout the overnight session and commences trade today at 0.7371. In upcoming news all eyes will be on the Monetary Policy Meeting Minutes being released in the afternoon today that will provide a detailed record of the RBA’s latest meeting, while also providing an in depth view on the economic conditions that have influenced their recent decision to keep rates unchanged at 2.00%.
We expect a range today of 0.7330 – 0.7410
New Zealand Dollar:
The Kiwi has rallied yesterday following positive remarks made by Prime Minister John Key indicating that the NZ Dollar had dropped faster than expected. Key also highlighted that people should not be too negative when considering the outlook and that the NZ economy is “resilient”. The NZD/USD rallied off the back of these comments reaching intraday highs of 0.6601, and opens half a cent higher today at 65.62 US cents. Looking forward on the economic calendar we have visitor arrival and credit card spending numbers being released today, however the local currency is expected to tread water around the same levels until the rate decision later in the week.
Great British Pound:
The Pound Sterling has opened much weaker across the board this morning as weak home price data and greenback strength take their toll on the local currency. July housing price index data which outlines the change in asking prices of homes for sale revealed a mere 0.1% increase, whereas June results presented a 3% increase. Furthermore remarks made by Fed official Bullard stating that the US Federal reserve should raise rates in September have also added to the downward pressure on the Cable. The Pound opens lower against its US counterpart at 1.5563, and lower against its Australian and New Zealand counterpart at 2.1110 and 2.3699 respectively.
We expect a range today of GBP/AUD 2.1070 – 2.1150
Majors:
The EUR/USD has struggled to break free of recent ranges opening today around similar levels seen throughout yesterday’s session. Recent reports have shown that Greece has repaid in full its two IMF loan payments that were behind schedule, and local banks are now open and back in business, however they are only at limited functionality. In US markets there were no domestic data releases throughout the last trade session, although regular comments made by various US Fed officials regarding an interest rate hike later in the year has helped the Greenback find support against most its major counterparts. The Euro Dollar currency pair did tick higher throughout trade yesterday to touch highs of EUR/USD 1.0864, however the small progress made by the EUR against its US counterpart was erased overnight and begins trade today at EUR/USD1.0823.
Data releases:
AUD: Monetary Policy Meeting Minutes
CHF: Trade Balance
CNY: Foreign Direct Investment ytd/y
GBP: Public Sector Net Borrowing
NZD: Visitor Arrivals m/m, Credit Card Spending y/y