Australian Dollar
Expected Range 0.7410 – 0.7520
Delivering a statement which gave no indication that the Reserve Bank of Australia intends on easing monetary policy further, the Australian rallied and rallied hard yesterday. Reaching an eventual high of 0.7463 when valued against its US Counterpart expectations which surround further cuts have been trimmed back over the past 24 hours. Whilst interest rates were kept on hold at a record low of 1.75 percent it’s been the lack of dovish signalling which has created the greatest motivation for buyers to jump on the Australian dollar bandwagon. Opening in a notably stronger position this morning at a rate of 0.7459, trade data from China today promises to deliver a further dose of volatility.
New Zealand Dollar
Expected Range 0.6950 – 0.7050
The New Zealand dollar has fallen below the 70 US Cents mark during overnight trade as investors shifted funds away from all asset classes deemed riskier in nature. Highlighting the vulnerabilities of the Kiwi to broader risk flows, two key points of uncertainty lie on the horizon, those being the FOMC decision on Thursday followed by the Brexit referendum next week. In what’s likely to be another busy 24 hours period, locally today house sales data from May along with first quarter current account numbers are both scheduled to be released over the coming hours. Opening notably weaker this morning the New Zealand dollar currently buys 69.94 US Cents.
Great British Pound
Expected Range 1.9130 – 1.9250
The Sterling’s downside bias has remained comfortably intact overnight with the Great British Pound testing fresh lows just above major support at 1.4089 when valued against its US Counterpart. Whilst price action has been so closely tied to Brexit fears recently, key macro developments overnight have also played a significant role with an annualised CPI print confirming that whilst inflation sped up slightly in May its pace still remains subdued at best. Ahead of a labour market report this evening which is expected to show no change to the headline rate which currently stands at 5.1 percent, the BOE is also likely to remain firmly in the hold corner ahead of next week’s Brexit vote. Opening weaker across the board the Sterling has lost further ground versus the Greenback (1.4098), the Aussie (1.9187) and the Kiwi (2.0155).
Majors
Expected Range N/A
Stocks across Asia, the United States and Europe fell for a fourth consecutive day on Tuesday as policymakers gained further insights into the health of the global economy amid an increasing belief that what started as a concern is now becoming a fear that Britain will vote to the leave European Union later next week. Leading to significant rally for the Japanese Yen, additional safe havens such bonds and gold have been the major benefactors. In economic flows overnight US Retail Sales grew at a healthy pace during May a read which will likely support the case for higher rates during the back of this year. Whilst investors have all but ruled out a rate increase this month Janet Yellens policy announcement on Thursday will still be closely monitored for any underlying clues. Opening weaker versus the Yen at a rate of 106.029 the Greenbacks stronger versus the 17-nation euro at 1.1208.