US dollar continues to outpace its rivals

Australian Dollar:

Trading ranges have once again solidified over the past 24 hours with the Australian dollar bouncing between a low of 0.9271 and a high of 0.9329 when valued against its US Counterpart.  With US stock markets continuing their upward trajectory there has been very little on offer from an economic standpoint this week, hence the lack of volatility across broader currency markets. Looking ahead over the coming days investors will be keeping a very close eye on the quarterly capital expenditure number due to be released this Thursday with the consensus forecast predicating capital expenditure in the current financial year to come in at $142 billion. Opening at the familiar level of 0.9301 this morning the Australian dollar isn’t likely to break-down any major hurdles today ahead of key prints tomorrow.

• We expect a range today of 0.9270 – 0.9330

New Zealand Dollar:

The New Zealand dollar has been weighed down during the first half of this week unable to keep pace with a notably stronger US currency. Slipping to a low of 0.8310 overnight, overall the past 24 hours has offered very few buying opportunities with figures early yesterday further weighing on sentiment after trade balance numbers comfortably missed expectation. Opening lower against the Greenback this morning at a rate of 0.8331 in other currency moves the Kiwi opens lower also against the Australian dollar at 0.8950

• We expect a range today of 0.8300 – 0.8370

Great British Pound:

The Great British Pound opens lower this morning at a rate of 1.6539 when valued against its US Counterpart, a mere 0.5 percent from its lowest level in more than five months. Having now amassed its seventh consecutive week of weekly loss, its longest losing streak since September 2008, the majority of the losses have been contributed not necessarily to weak economic performance however a notable US dollar recovery as well as the stance of the Bank Of England who continue to push back expectations over the timing of interest rate rises. Lower against other major pairs the Sterling weaker this morning also against the Aussie (1.7777) and the Kiwi (1.9845)

• We expect a range today of 1.7740 – 1.7820

Majors:

The US dollar index which measures the strength of the Greenback against a basket of currencies continued its advance overnight reaching its highest level in 13 months after a measure of consumer confidence surpassed expectation as did a report on manufacturing. Reinforcing speculation that the US Federal Reserve may bring forward future interest rate raises, monetary policy settings are set to be greatly influenced by macro developments, developments overnight which pointed towards an accelerated recovery. With market participants not shying away from picking up US dollar dominated assets the 18 –nation Euro suffered overnight moving from a high of 1.3213 down to a low of 1.3163. Consolidating losses opening lower this morning at 1.3167 further data prints from the world’s largest economy (GDP), could well provide further support for the Greenback.  

Data releases

• AUD: Construction work done q/q
• NZD: FPI m/m
• JPY: No data today
• GBP: No data today
• EUR: GfK German Consumer Climate
• USD: Crude Oil Inventories