Aussie runs out of steam as US numbers impress

Australian Dollar:

The Australian dollar ran out of momentum during Asian trade on Thursday after a night where the higher yielding currency climbed sharply against the Greenback. Positive data from China with new loans rising and a 3.4 per cent increase in local inflation expectations could not help the AUD as it was clear profit takers had stepped in. Overnight impressive US numbers saw the safe haven currency continue higher as the Aussie fell to lows of 0.8684, however as the night transgressed the AUD recovered to open this morning half a per cent weaker at 0.8762. Heading into the weekend the economic docket locally is quiet with the focus offshore on the US for direction.

• We expect a range today of 0.8715 – 0.8795

New Zealand Dollar:

The New Zealand dollar had a moderately quiet day against the Greenback on Thursday however edged slightly higher continuing to draw energy from strong local data and an increase in the Global dairy trade early yesterday morning. Positive Chinese numbers showed an uptake in new loans and the business manufacturing index displayed expansionary figures which are all encouraging signs for the NZ economy. Overnight Greenback strength took the spotlight as surprisingly upbeat results were released in the US. The Kiwi fell as low as 0.7889 however opens this morning having recovered narrowly weaker at 0.7944. As the weekend approaches there is no data locally as onlookers watch the US markets closely for direction.

• We expect a range today of 0.7900 – 0.7980

Great British Pound:

The British Pound climbed off an 11 month low against the Greenback on Thursday defying strong US releases overnight.  With no local data in the UK for direction the Sterling moved off market sentiment as the USD dipped lower in overnight trade. The slump came after softer than expected numbers on Wednesday lowered market expectations for an earlier than anticipated rate hike by the US Federal Reserve. Upbeat US figures including unemployment, production and manufacturing could not change the tone as the Sterling opens this morning over half a cent stronger at 1.6086 against the safe haven USD. The GBP gained in a similar manner against the higher yielding Aussie(1.8370) and Kiwi(2.0255). Friday appears to be another session with no local data in the UK as offshore US releases will provide market direction.

• We expect a range today of 1.8330 – 1.8410

Majors:

The US dollar climbed against most majors overnight in a session of trade filled with strong data releases for the safe haven currency. Although Europe announced upbeat CPI and trade balance numbers, spotlight was on the US as the Greenback heavily gained. The impressive run began with unemployment claims falling, closely backed up by industrial production increasing more than forecast. The Philly Fed Manufacturing index an hour later sustained USD strength as the EUR/USD cross fell as low as 1.2711. The strong run of data will continue speculation the US Federal Reserve is considering an early rate increase in 2015. Heading into the weekend the economic docket appears to be empty aside from the US as preliminary consumer sentiment, building permits and a talk from US Fed Chair Janet Yellen will take centre stage.

Data releases:

• AUD: No Data
• NZD: No Data
• JPY: No Data
• GBP: No Data
• EUR: No Data 
• USD: Building Permits, Fed Chair Yellen Speaks, Housing Starts, Prelim UoM Consumer Sentiment, Prelim UoM Inflation Expectations