AUD breaches 72 US Cents mark

AUD / USD

Expected Range: 0.7150 - 0.7240

The Australian dollar suffered it largest daily drop in close to one week yesterday after RBA Governor Glenn Stevens failed to diminish expectations which surround additional monetary easing. Defending the RBA’s inflation target, stating that it was agile enough to ensure sound decisions are made, the Australian dollar fell immediately following his remarks dropping to a low of 0.7194 when valued against its US Counterpart. Triggering sell signs elsewhere particularly across the Australian share market hints of further cuts over the coming months will only feed through to a heightened degree of softness for the Australian dollar over the medium term. Weaker upon open this morning the Aussie dollar currently buys 71.83 US Cents.

NZD / USD

Expected Range: 0.6700 - 0.6800

Proving to be another uninspiring session for the Kiwi yesterday New Zealand’s dollar touched a 24 low of 0.6705 when valued against its US Counterpart. In line with its lowest mark in 8 weeks its downward trend overnight on Tuesday was re-affirmed by a broadly stronger Greenback which was bolstered given a string of impressive housing prints. With investors looking towards New Zealand Trade Balance number for April this morning, finally market participants will have some domestic flows to assist in driving direction. Opening in a marginally weaker position the New Zealand dollar currently swaps hands at a rate of 0.6736.

GBP / AUD

Expected Range: 1.9680 - 1.9780

During a session containing several notable price swings the Great British Pound opens overall in a stronger position this morning when valued against its US Counterpart. Trading initially higher following the latest poll which showed growing support for the UK to remain in the EU, highs up above the 1.4500 mark proved short-lived after the Consumer Price Index for April missed expectation. Opening half a cent stronger at a rate of 1.4458 when valued against the Greenback the Sterling is stronger versus the Kiwi (2.1220) whilst lower versus the Aussie (1.9736).

USD, EUR, JPY

Bolstering the case for a further upward move in interest rates by the US Federal Reserve, a report overnight showed US consumer prices recorded their biggest monthly increase in more than three years. Rising by 0.4 percent during the month of April, the annualised CPI level now sits at 1.1 percent. In further signs that the world’s largest economy is gaining momentum following a stagnant first quarter, figures overnight also showed that industrial production and housing starts rebounded strongly last month. Having initially traded higher when valued against a basket of currencies the Greenback’s advance has overall been limited, capped mainly by falling equity prices which contracted off the back shifting Fed expectations. In what’s likely to be an equally eventful session tonight given the release of FOMC minutes, it will interesting to note whether a serious debate for a June or July hike has already began. Opening lower versus the euro at a rate of 1.1313 the Greenback is stronger versus the Yen (109.155).