AUD continues its slide


Australian Dollar:

In what has become a familiar headline over the past month the Australian dollar hit a fresh four year low against the US dollar overnight on Friday trading as a low as 0.8121 when valued against its US Counterpart. With previous support at the 82 US Cents mark now the nearest point of resistance the major catalyst for the move lower last week came after the US Federal Reserve communicated that it would remain patient on the timing of future interest rate increases with market participants now pricing in the likelihood of an April rate rise. Opening weaker this morning at a rate of 0.8140 ranges are expected to solidify over the coming days with the festive season having a negative bearing on overall broader liquidity flows.  

  • We expect a range today of 0.8100 – 0.8200


New Zealand Dollar:

With very little on offer domestically late last week investors continued their repatriation of funds back into US dollar dominated assets a move which saw the Standard and Poor’s 500 Index notch its second best week this year. In what’s shaping as a positive end to the year for the world’s deepest and safest market, commodity and growth linked currencies like the Kiwi have struggled in comparison particularly given the improved US interest rate outlook. Weaker upon open this morning swapping hands at a rate of 0.7751 trade balance figures tomorrow remain the highlight in what should be an otherwise uneventful Christmas week.  

  • We expect a range today of 0.7730 - 0.7820


Great British Pound:

Triggering investors to drop the Great British Pound on Friday BOE policy maker David Miles wrote that there remains no great urgency in starting the process of moving monetary policy back towards normal settings, a stance somewhat justified given inflation slowed to be below 1 percent last month. Shedding 0.3 percent on Friday and 0.6 percent for the week a stronger US dollar hasn’t improved the situation. Opening weaker against the US Dollar this morning at a rate of 1.5620 the Sterling is stronger against both the Aussie (1.9174) and the Kiwi (2.0174).

  • We expect a range today of 1.9130 – 1.9200


Majors:

The USD/JPY gained 0.6 percent last week trading in a range of 118.82- 119.63. With US Stocks broadly highly the US Dollar Spot Index gained 0.9 percent during a week dominated by key rhetoric from the US Federal Reserve who re-iterated that the US economy is still growing at a reasonably robust pace, a view which has led to accelerated interest rate forecasts. With major equity markets finishing the year on a positive note we expect this holiday shortened week to be significantly less volatile with key highlights coming in the form of Q3 US Gross Domestic Product, US durable goods orders and two home sale releases. Keeping in mind there remains notable swings occurring across emerging markets the Greenbacks near-term direction will be greatly influenced by broader market sentiment. Meanwhile this morning the Euro opens weaker when valued against its US Counterpart at a rate of 1.2228 whilst the US dollar is stronger against the Yen at 119.455.


Data releases

  • AUD: No data today
  • NZD: No data today
  • JPY: Bank Holiday
  • GBP: No data today
  • EUR: Consumer Confidence
  • USD: No data today

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE

EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE

EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action. 

EUR/USD News

GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday

GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday

GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance. 

GBP/USD News

Gold price sits at all-time highs above $2,230, US PCE eyed

Gold price sits at all-time highs above $2,230, US PCE eyed

Gold price hit all-time highs at $2,236 on Thursday to finish Q1 2024 with a bang. Most major world markets, including the US are closed due to Holy Friday, leaving volatility around Gold price highly subdued. US PCE inflation and Powell are awaited. 

Gold News

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.

Read more

Key events in developed markets next week

Key events in developed markets next week

Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.

Read more

Majors

Cryptocurrencies

Signatures