Markets quiet ahead of key releases

Australian Dollar:

Having enjoyed its biggest weekly rise when valued against its US Counterpart since September last year the Australian dollar fell 0.4 percent yesterday reaching a low of 0.8905. In what’s proved to be a relatively quiet start to the week the Australian dollar has once again struggled on approaches towards the critical 90 US cents mark with longer-term bets of a lower currency restraining investor’s attempts to notch up short-term gains. Weaker this morning at a rate of 0.8942 there is an abundance of data releases due for release today including the ABS residential property index, the NAB business survey and Australian housing finance numbers.

• We expect a range today of 0.8910 – 0.8980

New Zealand Dollar

Having drifted between a tight 24 hour range of 0.8256 – 0.8286 when valued against its US Counterpart the New Zealand dollar has struggled for direction during the early parts of this week. Whilst doing well to consolidate its gains from last week a lack of domestic data today has investors already looking towards Janet Yellen’s first appearance before US Congress as the new president of the US Federal Reserve. With analyst’s keen to hear her policy stance her views on existing monetary policy settings will also be critical in determining the Greenbacks longer- term direction. Marginally weaker this morning the New Zealand dollar currently buys 82.64 US Cents.  

• We expect a range today of 0.8230 – 0.8300

Great British Pound:

Price action has slowed over the past 24 hours with volatility indexes all pointed lower. Having traded in a range of 1.6382 – 1.6426 when valued against its US Counterpart overnight there is a real sense that the subdued moods across markets at the moment represent the calm before the storm with the highly anticipated Bank of England Inflation Report promising to shed light on the Central Bank’s next interest rate move. With such key reports due for release this evening ranges are once again set to tighten during the lead up. Marginally higher against the Greenback at 1.6400 the Great British Pound is higher also against both the Aussie 1.8335 and the Kiwi 1.9839.  

• We expect a range today of 1.8300 - 1.8370

Majors:

US Stocks have fluctuated overnight in what was a generally lacklustre session across broader financial markets. Whilst there has been a lack of substantial data releases available investors are waiting for US Federal Reserve President Janet Yellen to speak on monetary policy and the economic outlook tomorrow, marking her first speech since being sworn in. Testifying before the House Financial Service Committee markets will be looking for additional forward guidance given the degree of unemployment continues to lurk around its lowest point in more than five years. In currency moves overnight the dollar index traded down 0.02 percent after hitting its lowest level in a week. Emphasising its softness the Greenback is weaker against both the Japanese Yen (102.168) and the Euro (1.3634) this morning.

Data releases

• AUD: Westpac Consumer Sentiment
• NZD: No data today
• JPY: Core Machinery Orders m/m, Tertiary Industry Activity m/m
• GBP: BOE Gov Carney Speaks, BOE Inflation Report, BOE Inflation Report
• EUR: Industrial Production, ECB President Draghi Speaks
• USD: Mortgage Delinquencies