Aussie slides in slow start to the week

Australian Dollar:

The Australian dollar remained flat during Asian trade on Monday as a security scare in the Sydney CBD took centre stage. The higher yielding currency did not move as new motor vehicle sales disappointed while a delayed midyear economic and fiscal outlook had little impact. The outlook showed solid growth amidst a global slowdown and mentioned infrastructure as a key area for Australia’s growth story moving forward. Overnight the lack of volatility continued as the Aussie sits just shy of the weekly open at 0.8223 against the Greenback. Today all eyes will closely watch the monetary policy meeting minutes for direction.

• We expect a range today of 0.8180 – 0.8260

New Zealand Dollar:

The New Zealand dollar drifted lower in subdued trade on Monday as a lack of economic data saw the Greenback gain ground across the board. Touching lows of 0.7725 the Kiwi could not manage to find its feet unable to take advantage of mixed US numbers overnight to open this morning weaker at 0.7742. Today investors will watch as no local economic data is released once more however a myriad of US and vital Chinese manufacturing numbers will provide guidance to the higher yielding currency.

• We expect a range today of 0.7700 – 0.7780

Great British Pound:

The Great British Pound fell against its US counterpart on Monday, beginning the week sinking lower amidst concerns over falling commodity prices and future US monetary policy moves. The main apprehension has been the continuing dipping oil prices and their potential to affect energy companies globally. The Sterling similarly slid against the higher yielding Aussie(1.9035) and Kiwi(2.0216). Today investors will watch closely as Bank of England Governor Carney speaks after the financial stability report is announced. There is talk Carney will further delay an anticipated interest rate hike due to global growth concerns being brought into the spotlight recently.

• We expect a range today of 1.8995 – 1.9075

Majors:

On a Monday with limited economic data to get the market moving the Greenback showed broad gains after political instability in Greece continued to weigh on the European economy. The Euro was down just under half a per cent to 1.2439 as the Greek government will vote for a president in parliament this week. In the US mixed numbers were released however strong industrial production appeared to take centre stage. After a quiet start to the week investors will watch the large array of European data released tonight closely followed by high impact US numbers shortly after.

Data releases: 

• AUD: RBA Assist Gov Debelle Speaks, Monetary Policy Meeting Minutes
• NZD: No Data
• JPY: Flash Manufacturing PMI
• GBP: Bank Stress Tests Results, BOE Financial Stability Report, FPC Statement, BOE Gov Carney Speaks, CPI y/y, PPI Input m/m, RPI y/y, Core CPI y/y, HPI y/y, PPI Output m/m
• EUR: French Flash Manufacturing PMI, French Flash Services PMI, German Flash Services PMI, German Flash Services PMI, Flash Manufacturing PMI, Flash Services PMI, Italian Trade Balance, German ZEW Economic Sentiment, ZEW Economic Sentiment, Trade Balance
• USD: Building Permits, Housing Starts, Flash Manufacturing