Australian Dollar: The Australian Dollar has hung onto its recent gains and opens the new week at 0.9290. A recent string of positive local economic data has all but confirmed to the market that the Reserve Bank of Australia's next move in rates will be up. The unit held above US92 cents in offshore trade and this is another positive sign for the currency. The local economic calendar is fairly light this week and wider ranges are likely to occur offshore. Meanwhile, the Aussie is very strong against the Euro (0.7295) and British pound (0.6040).
- We expect a range today in the AUD/USD rate of 0.9275 to 0.9340
Great Britain Pound: Pound Sterling opens the new week lower against the greenback at 1.5360 despite a boost in risk appetite in recent days. Data released on Friday night revealed that UK producer prices for August came in on expectation at 4.6 per cent for the month of August but this did little to inspire any positive pound movement. The currency tested support at 1.5300 several times last week and lower levels are looming. The pound is also sharply lower against both the Australian Dollar (1.6500) and the New Zealand Dollar (2.0990).
- We expect a range today in the GBP/AUD rate of 1.6440 to 1.6535
New Zealand Dollar: The New Zealand Dollar hit a one-month high during European trade on Friday night at US73 cents as concerns for the state of the U.S. economy eased last week and the greenback moved lower. Attention this week turns to the Reserve Bank of New Zealands (RBNZ) monetary policy statement on Thursday. Given the uncertain economic conditions prevailing at present, the RBNZ is likely to keep rates on hold at 3 per cent. The kiwi opens at 0.7290 against the greenback and 0.7856 against the Australian Dollar.
- We expect a range today in the NZD/USD rate of 0.7280 to 0.7345
Majors: The big dollar hit a one-week high of 84.37 against the Yen on Friday after Japanese gross domestic product grew at an annualised pace of 1.5 per cent. Central bank officials in Japan are continuing to monitor the strength of their currency which has rallied more than 10 per cent against the greenback this year putting pressure on the nations export performance. Meanwhile, the Euro (1.2710) opens largely unchanged against the greenback. The 16-nation currency has retreated in recent days after reports resurfaced regarding the regions sovereign debt crisis.
Data Releases:
- We expect a range today in the AUD/USD rate of 0.9275 to 0.9340
Great Britain Pound: Pound Sterling opens the new week lower against the greenback at 1.5360 despite a boost in risk appetite in recent days. Data released on Friday night revealed that UK producer prices for August came in on expectation at 4.6 per cent for the month of August but this did little to inspire any positive pound movement. The currency tested support at 1.5300 several times last week and lower levels are looming. The pound is also sharply lower against both the Australian Dollar (1.6500) and the New Zealand Dollar (2.0990).
- We expect a range today in the GBP/AUD rate of 1.6440 to 1.6535
New Zealand Dollar: The New Zealand Dollar hit a one-month high during European trade on Friday night at US73 cents as concerns for the state of the U.S. economy eased last week and the greenback moved lower. Attention this week turns to the Reserve Bank of New Zealands (RBNZ) monetary policy statement on Thursday. Given the uncertain economic conditions prevailing at present, the RBNZ is likely to keep rates on hold at 3 per cent. The kiwi opens at 0.7290 against the greenback and 0.7856 against the Australian Dollar.
- We expect a range today in the NZD/USD rate of 0.7280 to 0.7345
Majors: The big dollar hit a one-week high of 84.37 against the Yen on Friday after Japanese gross domestic product grew at an annualised pace of 1.5 per cent. Central bank officials in Japan are continuing to monitor the strength of their currency which has rallied more than 10 per cent against the greenback this year putting pressure on the nations export performance. Meanwhile, the Euro (1.2710) opens largely unchanged against the greenback. The 16-nation currency has retreated in recent days after reports resurfaced regarding the regions sovereign debt crisis.
Data Releases:
- AUD: No data today
- CAD: No data today
- EUR: Euro Zone Industrial Production, August
- GBP: RICS House Price Balance, Aug
- JPY: No data today
- NZD: Food Prices, August
- USD: Monthly Budget Statement, Aug
