Australian Dollar
Expected Range 0.7470 – 0.7560
In a positive session for the Australian dollar which saw the domestic unit recapture levels up above the 75 US Cents mark, the constructive move higher is impressive in the context of a global backdrop still littered with uncertainty following the UK’s decision to leave the European Union. In what’s became a familiar resistance level for the Australian dollar an extended rally would see the upper benchmark of 0.7570 tested as investors continue to absorb further rhetoric delivered from the US Federal Reserve overnight. Opening stronger this morning at a rate of 0.7520 domestic highlights are few and far between today as market participants look towards an early snapshot of employment growth from the United State this evening
New Zealand Dollar
Expected Range 0.7080 – 0.7180
The New Zealand dollar has traded between a low of 0.7079 and a high of 0.7156 when valued against its US Counterpart over the past 24 hours. Struggling to establish any underlying trend, near-term price activity has been choppy this week with broader measures of risk still skittish in the aftermath of the Brexit Vote. Whilst investors have remained well attuned to the cautious undertones delivered by Central Banks globally, US Dollar flows are likely to remain a key driver for the Kiwi through to the end of this week given a string of employment data is expected from the world’s largest economy. Opening marginally weaker this morning the New Zealand dollar currently buys 71.34 US Cents.
Great British Pound
Expected Range 1.8040 – 1.8160
The Great British Pound has again been hit hard over the past 24 hours, absolutely crumbling in a sign there is very little support for the Sterling when valued below the 1.30 mark versus its US Counterpart. Moving well and truly into unchartered waters, the unprecedented ground which is now being broken was initially triggered by the underperformance of riskier assets during Asia’s session. Whilst a manufacturing print is expected this evening the next real catalyst which threatens to further jolt the Sterling is likely to come from the Bank of England which meets towards the back end of next week. Having plummeted to a low of 1.2791 the Sterling has regained some ground, opening weaker versus the Greenback at 1.2923. In other moves the Great British Pound is weaker versus both the Aussie (1.7167) and the Kiwi (1.8104).
Majors
Expected Range N/A
US Stocks have advanced overnight following the release of minutes from the Federal Reserve’s June 14 meeting in which policy makers left interest rates on hold. Amid brewing uncertainty across global markets ahead of a vote which has now seen the UK leave the European Union, Fed Officials are mindful of the Brexit’s impact on labour markets and financial stability as look to further slow the pace of any underlying increases to borrowing costs. In what’s became an even higher hurdle for policy makers globally, a heightened probability of fresh turmoil is pushing back the timeframes for tighter monetary settings. In an environment which still favours the traditional safe-haven basket the Japanese Yen has lost some ground versus the Greenback (101.322) whilst the euro remains steady at a rate of 1.1100 versus the world’s reserve currency. Looking ahead through to the end of this week, rhetoric from BOJ Governor Kuroda today, followed by back to back labour reports from the United States will ensure investors have plenty to be mindful of.