Australian Dollar
Expected Range 0.7480 – 0.7770
The Australian dollar remained steadfast in the face of waning risk appetite through trade on Wednesday refusing to relinquish recent gains. The AUD touched intraday highs at 0.7635 before edging back toward the 0.76 handle into the close as investors follow a clear uptrend channel engaging higher highs and higher lows. Despite a clear shift in demand for risk and a softer than anticipated Chinese Trade Balance report the Aussie held onto gains as investors position themselves ahead of today’s employment data report. A strong read could help push the AUD toward annual highs near 0.78 as technical indicators suggest there is additional upside support available on moves toward 0.7770, while a soft read and move below the psychological 0.75 handle could undo the hard earned recovery and stimulate a reversal in the current bullish bias.
New Zealand Dollar
Expected Range 0.7150 – 0.7350
The New Zealand dollar offered little to excite investors through trade on Wednesday maintain recent gains in the face of waning risk appetite. Having edged lower throughout the domestic session the Kiwi bounced off 0.7240 to touch intraday highs at 0.7318 before profit taking sent the unit lower into the daily close. With little of note on today’s economic calendar attentions will again be drawn offshore with a raft of Chinese GDP and Industrial Production numbers dominating the macroeconomic docket.
Great British Pound
Expected Range 1.7000 – 1.7550
The Great British Pound edged lower through trade on Wednesday relinquishing a portion of the weeks earlier gains as risk appetite waned and the gloss accompanying Theresa May’s secession to the Prime Ministership faded. Sterling lost a quarter of a percent throughout an irregular trading session falling back below 1.32 to touch session lows at 1.3137. Attentions now turn to the BoE and its monthly monetary policy and asset purchase facility announcement. Investors will be keenly attuned to any change in rhetoric as the Committee meets for the first time since the June 23rd Brexit referendum.
Majors
Expected Range N/A
The Greenbacks two day bullish upturn faded through trade on Wednesday as risk appetite waned and investors looked toward the lower yielding Yen, Euro and Swiss Franc. Having suffered heavy losses through trade on Monday and Tuesday the Japanese Yen stabilised recouping losses suffered in the wake of the Abe election win. The Liberal Democratic party’s victory heightened stimulus expectations and boosted risk demand however comments from key Japanese officials overnight suggest that several fiscal and monetary policy measures are yet to be considered and direct Central Bank funding is not yet an option. The USD fell back below 104 briefly touching intraday lows at 103.95 before edging marginally higher into the close. The Euro enjoyed strong gains bouncing through 1.11 to touch intraday highs at 1.1119. Attentions now turn to US unemployment claims as a secondary marker to last week’s strong NFP Print.