AUD falls throughout yesterday's trade

Australian Dollar:

An absence of domestic data yesterday saw the Aussie fall consistently through trade on Monday and opens weaker today buying only 69.88 US cents. A combination of commodity price weakness affecting Australian growth rate prospects, and positive economic data being released out of the US overnight sent the AUD/USD to intraday lows of 0.6979. With another clear economic calendar today free of any local publications, the Australian Dollar will once again take direction from overseas announcements as traders anxiously await tomorrow’s domestic building approvals and private sector credit data.

• We expect a range today of AUD/USD 0.6940 – 0.7020

New Zealand Dollar:

The NZ Dollar commences trade softer today at NZD/USD 0.6327 as a vacant economic docket results in the local currency trending downwards throughout yesterday’s trade session. The Kiwi remained range bound throughout the Asian session, however overnight took a turn downwards to reach lows of NZD/USD 0.6325 which was partly due to positive US inflation and spending data. With no local economic data scheduled for release today the Kiwi is expected to keep within a familiar range, while looking to foreign announcements for direction.

Great British Pound:

Greenback strength across the board yesterday has resulted in the GBP/USD starting lower today at 1.5172. With no news released locally the domestic currency bounced between highs of GBP/USD 1.5240 and lows of 1.5157. The Pound Sterling also opens stronger against its Australian and New Zealand counterparts at 2.1708 and 2.3960 respectively. Investor attention today will be focused on individual net lending figures being released from the Bank of England for the month of August, as well as BOE Governor Carney’s speech at Lloyds of London later in the evening.

• We expect a range today of GBP/AUD 2.1670 – 2.1750

Majors:

The EUR/USD has appreciated overnight and commences trade stronger today at 1.1244. With no local announcements in the Eurozone yesterday, US policymaker’s uncertainty and conflicting views regarding a rate hike this year seem to have taken a toll on the currency pair. On the cards today out of the US are a few economic releases, however CB consumer confidence will look to have the most significant impact on the Euro Dollar, and the Eurozone has German and Spanish CPI data, as well as German retail sales figures that are expected to have a notable impact on the currency value.

Data releases:

• CAD: RMPI m/m, IPPI m/m
• EUR: German Import Prices m/m, German Prelim CPI m/m, Spanish Flash CPI y/y, Italian 10-y Bond Auction
• GBP: Net Lending to Individuals m/m, M4 Money Supply m/m, Mortgage Approvals, CBI Realized Sales, BOE Gov Carney Speaks
• USD: Goods Trade Balance, S&P/CS Composite-20 HPI y/y, CB Consumer Confidence