AUD heavy on approaches towards 93 US Cents

Australian Dollar:

During a shortened week characterised by low volumes the Australian dollar has traded between a low of 0.9251 and a high of 0.9300 when valued against its US Counterpart over the past 24 hours. Maintaining its downward bias since Wednesday’s disappointing inflation read very little price activity is expected today given the Anzac Day public holiday. Set to remain below the critical 93 US mark for the time being, key monetary policy statements along with employment numbers from the world’s largest economy should provide some further fireworks next week as volumes start to normalise. 20 basis points lower this morning the Australian dollar currently buys 92.62 US Cents.   

• We expect a range today of 0.9230 – 0.9300

New Zealand Dollar

Demand for the New Zealand dollar was initially bolstered yesterday after the Reserve Bank of New Zealand raised its benchmark rate for a second consecutive month to 3 percent. Triggering an early morning rise to a high of 0.8635 when valued against its US counterpart, interestingly Governor Graeme Wheeler did acknowledge that the strength of the dollar will play some part in determining how high interest rates will go, signalling that monetary policy will be adjusted to a level in which demand can be cooled. With investors reluctant to pick up the higher yielding unit during offshore trade, the shift higher has been a short lived one for the Kiwi which opens in familiar territory this morning at a rate of 0.8563.

• We expect a range today of 0.8530 -0.8600

Great British Pound:

Playing a supportive role for the Great British Pound overnight a survey of 131 firms showed that sales growth during April had improved from March. Painting a relatively positive outlook for the retail sector further gauges of consumer spending are expected out this evening, with any above forecast results likely to see the Sterling once again find support up above the 1.6800 mark when valued against its US Counterpart. Opening spot on that critical level of 1.6800 this morning the Sterling has also notched up some impressive gains against both the Aussie (1.8133) and the Kiwi (1.9609).

• We expect a range today of 1.8100 – 1.8170

Majors:

US Stocks remained well supported overnight after figures showed durable goods orders rose more than forecast in March, pointing to faster levels of production throughout the world’s largest economy. Whilst weekly unemployment claims moved in the wrong direction there has been generally cautious tone thrust upon markets overnight after Russian President Vladimir Putin warned the Ukraine against continuing its anti-separatist offensive. In currency flows the 17 nation Euro has remained solid up above the 1.3800 mark when valued against the greenback with ECB President Mario Draghi stating that Policy makers are prepared to roll out some broad based asset purchases should the inflation outlook further deteriorate. Meanwhile this morning the USD/JPY is marginally weaker at a rate of 102.293.

Data releases

• AUD: Bank Holiday
• NZD: Bank Holiday
• JPY: Tokyo CPI y/y 
• GBP: Retail Sales m/m
• EUR: No data today
• USD: No data today