AUD Clings to the 93 US Cents mark

Australian Dollar:

The Australian dollar managed to recapture some lost ground when valued against its US Counterpart to finish last week marginally higher. With positive business and consumer confidence results providing a solid domestic platform markets overall did a good in job looking past the ongoing tensions which continue to surround the Ukraine. Having bounced from an early week low of 0.9270 the Australian dollar is steady this morning as it currently buys 93.15 US Cents. Looking ahead this week minutes from the Reserve Banks August meeting due for release tomorrow will be a highlight followed by manufacturing figures from China on Wednesday.  

• We expect a range today of 0.9270 – 0.9330

New Zealand Dollar:

The New Zealand dollar opens this morning virtually unchanged when valued against its US Counterpart amidst an economic backdrop which in general has continued to support flows back into safe haven assets. Given an extremely light economic calendar domestically, the Kiwi drifted between a low of 0.8466 and a high of 0.8500 when valued against the Greenback on Friday opening this morning still unable to crack the 85 US Cents barrier. With recent ranges expected to hold today liquidity levels should increase tomorrow in the lead up to the release of the government’s pre-election fiscal and economic update.

• We expect a range today of 0.8460 – 0.8520

Great British Pound:

In what proved to be a tumultuous week for the Great British Pound the Sterling rebounded on Friday assisted by as second estimate of quarter two Gross Domestic Product which confirmed Britain’s economy had grown by 0.8 per cent. Whilst such readings would normally trigger broader shifts in interest rate forecasts the Bank of England only last week confirmed that they intended to keep rates on hold until at least the end of this year. Opening stronger against the Greenback this morning at a rate of 1.6714 the Great British Pound is also stronger against both the Aussie (1.7939) and the Kiwi (1.9682).

• We expect a range today of 1.7900 – 1.7980

Majors:

The 18-nation Euro continued to tread water when valued against its US Counterpart last week, doing well to briefly touch a value in excess of the 1.3400 mark on Friday. In light of the Euro’s midweek hiccup triggered by poor French, German and Eurozone Q2 GDP, overall improved momentum within the macro environment appears something still a long way off with the bad well and truly outweighing the good ahead of this weeks manufacturing and services results. Opening this morning stronger at a rate of 1.3392, the Euro’s comeback will also be greatly dictated by the pace of interest rate rises within the world’s economy as investors look towards the key headlines of this week (CPI and The Jackson Hole Symposium) for added direction.  Marginally weaker against the Yen this morning at 102.301 Central Bank tone will continue to carry serious weight for the Greenback.

Data releases

• AUD: New Motor Vehicle Sales m/m
• NZD: No data today
• JPY: No data today
• GBP: Rightmove HPI Mm/
• EUR: Trade Balance
• USD: NAHB Housing Market Index