Risk off, Aussie sold

Australian Dollar:

The Australian dollar remained steady intraday yesterday amidst a trickle of flat domestic business indicators which did little to inspire confidence in the higher yielding asset. Reaching a late night peak of 0.9390 when valued against its US Counterpart, it’s become an increasingly familiar story for the Aussie dollar this week which has been sold repeatedly on approaches towards the 94 US Cents mark. Whilst being sold off early this morning following reports that a Malaysian airliner was shot down close to the Russian Border a broader shift back in safe-haven assets has been triggered as the Australian dollar opens marginally weaker this morning at a rate of 0.9347.

• We expect a range today of 0.9320 – 0.9380

New Zealand Dollar:

During what’s been a woeful week for the New Zealand dollar the Kiwi has continued its slide over the past 24 hours with external shocks sparking a move back into the world’s deepest and safest markets. Following headlines that a Malaysian passenger jet had crashed in East Ukraine and that troops had been deployed to the ground in Gaza broader risk appetite has been sapped off the back substantially heightened global tensions. Trading from an earlier high of 0.8718 when valued against its US Counterpart the Kiwi opens close to half a cent lower this morning swapping hands a rate of 0.8667.

• We expect a range today of 0.8630 – 0.8700

Great British Pound:

Following the lead of virtually all major currencies last night, the Great British Pound has been sold off the back of heightened tensions in Russia and the Ukraine. Struggling in the face of a stronger US dollar a very light economic calendar domestically also did little to provide support for the Sterling which is lower this morning at a rate 1.7096. Lower against the Aussie also at a rate of 1.8287 the only real signs of strength came when valued against the Kiwi which is half a cent stronger at 1.9722.

• We expect a range today of 1.8260 – 1.8320

Majors:

In a classic safe-haven play the Standard & Poor’s 500 Index fell the most in three months, Treasuries rallied, demand for gold rose and the Japanese Yen strengthened to a five-month high against the Euro after reports a Malaysian passenger jet carrying 295 people was shot down over east Ukraine. With the move to safer ground clearly the dominant theme overnight mixed economic reports from the United States in the form of lower than expected building approval and housing start figures failed to garnish a great deal of attention with broader currency ranges remaining relatively tight whilst favouring the Yen. Opening virtually unchanged this morning against the US dollar the Euro is steady at 1.3525 meanwhile JPY is stronger at 101.63.  

Data releases

• AUD: No data today
• NZD: No data today
• JPY: Monetary Policy Meeting Minutes
• GBP: No data today 
• EUR: German Buba President Weidmann Speaks, Current Account
• USD: Prelim Consumer Sentiment, Wholesale Sales m/m