US dollar weaker across the board

Australian Dollar:

After opening at a rate of 0.9030 when valued against its US Counterpart yesterday the Australian dollar tumbled during late morning trade following a report which showed the Australian economy shed 3700 jobs in January. Falling well short of what was expected, economist had forecasted a rise in employment of 15 000, instead the official unemployment rate now sits at 6 percent, its highest level since 2003. Dropping to an intraday low of 0.8926 pressure has no doubt intensified on policy makers who only last week remained relatively upbeat in their economic assessment suggesting that interest rates will be kept at existing levels for much of 2014. Opening this morning lower at a rate of 0.8985 the Australian dollar at least for the time being appears well supported up above the 89 US Cents mark.

• We expect a range today of 0.8940 – 0.9020

New Zealand Dollar

The New Zealand dollar has benefitted over the past 24 hours at the hands of a weaker Greenback weighed down off the back of continued growth concerns within the world’s largest economy. Bouncing from an afternoon low of 0.8291 the Kiwi dollar came to life overnight after a report showed US retail sales declined by the most in the 10 months. With poor weather conditions across the United States also fuelling concerns that the labour market will be adversely effected the US dollar for the time appears heavy. Opening stronger this morning at a rate of 0.8349 the New Zealand dollars direction is set be greatly influenced by key inflation data expected to be released from China over the coming hours.   

• We expect a range today of 0.8320 – 0.8380

Great British Pound:

Despite UK Stocks which retreated for the first time in seven days the Great British Pound has been in high demand overnight as investors shifted their funds out of US based assets. Given the broad based Greenback sell off as a result of disappointing macro indicators the Sterling moved from an earlier low of 1.6589 reaching an eventual high of 1.6655.  Given the lack of activity expected from local sources this evening the Great British Pounds value will continue to be greatly dictated by happenings within the world’s largest economy. Opening this morning stronger against the US Dollar at 1.6655 the Sterling is stronger also against the Aussie 1.9532 whilst opening unchanged against the Kiwi 1.9941.

• We expect a range today of 1.8490 - 1.8570

Majors:

The US dollar has fallen to a two-week low against the Euro overnight after US retail sales unexpectedly fell during January. Whilst lower against a handful of its major counterparts the main trigger for the southerly move came after data showed a 0.4 percent drop in consumer spending. Whilst the severe weather patterns across the United States have many economists questioning the accuracy of such measures investors appear reluctant to push the Greenback higher given the degree of uncertainty clouding the recovery story. With the Euro higher by comparison this morning at 1.3676 other key indicators including weekly jobless claims and business inventory figures both also missed forecast. In what’s shaping up as a relatively busy end to the week key releases from China and the US will continue to drive broader risk flows. Maintaining its recent value the USD/JPY is unchanged this morning currently swapping hands at a rate 102.247.

Data releases

• AUD: No data today
• NZD: No data today
• JPY: No data today 
• GBP: No data today
• EUR: French Prelim GDP q/q, German Prelim GDP q/q, French Prelim non-farm payrolls q/q, Italian Prelim GDP q/q, Flash GDP
• USD: Import Prices m/m, Capacity Utilization Rate, Industrial Production m/m, Prelim UoM Consumer Sentiment