AUD supported by the commodities sector

AUD / USD

Expected Range: 0.7700 - 0.7780

The Australian dollar rallied late in the Asian session yesterday, tracking higher from an earlier low of 0.7696 up to an eventual high of 0.7765 when valued against its US Counterpart. Despite a generally cautious backdrop the US session was once again dominated by poor data pushing the Greenback lower and in turn spurring further demand for commodity and growth linked currencies. Opening above the 77 US Cents handle, the Australian dollar currently swaps hands at a rate of 0.7748. With a two-month support line now being drawn at 0.7656, a near-term advance above 0.7800 will hinge on today’s CPI print where it’s expected inflationary pressures to have softened during the first three months of this year.

NZD / USD

Expected Range: 0.6850 - 0.6940

The New Zealand dollar has traded in tight in a range when valued against its US Counterpart over the past 24 hours, firming at a low of 0.6851 whilst running out of steam at 0.6910. With oil advancing, closing at its highest level in five months, sentiment towards the energy sector has significantly shifted over the past four weeks, a move supportive of a stronger New Zealand dollar. Ahead of this morning’s trade balance release investors will also be keeping a very close eye on two key policy meetings from the US Federal Reserve and Bank of Japan which both commence tonight. Opening 0.6 percent higher the Kiwi currently buys 68.95 US Cents.

GBP / AUD

Expected Range: 1.8750 - 1.8850

The Great British Pound has stretched its leg over the past 24 hours with the US Dollar being sold off against most major currencies. Touching a high of 1.4638 the Sterling opens this morning in a much more commanding position. With price activity being driven mainly by weaker US growth prospects, investors will be turning their attention to a preliminary GDP print out of the UK this evening where its expected Britain’s economy expanded by 0.4 percent during the first quarter of 2016. Opening stronger versus the Greenback at a rate of 1.4579 the Sterling is stronger versus both the Aussie (1.8798) and the Kiwi (2.1121).

USD, EUR, JPY

In a mixed session across Wall Street the price of crude oil rose by as much 3 percent whilst a falling Greenback offered further support to the commodities sector. Ahead of a two-day US Federal Reserve meeting which starts this evening, there were further signs of economic weakness from the United States overnight after a report showed that orders for long-lasting US manufacturing goods rebounded far less than expected during March whilst another report implied business spending and growth also remained subdued during the first quarter. Likely to only add to the dovish undertones of policy makers, Janet Yellens testimony is expected to have a direct impact on the worlds reserve currency which has depreciated since policy makers wound back future interest rates adjustments, from the four previously communicated, down currently to the two which are being priced in. In what’s shaping up as an important 48 hour window the US dollar opens broadly lower versus both the Japanese Yen (111.312) and the 17 nation euro (1.1296).