Strong US Economic data continues

AUD / USD

Expected Range: 0.7630 – 0.7730

The Australian dollar’s upward trajectory continued throughout Thursday’s domestic session advancing through 0.77 U.S cents. Lingering U.S profit taking mixed with upbeat labour market data helped bolster demand for the higher yielding unit and the AUD touched three month highs. A decline in the unemployment rate and larger than expected introduction of new roles to the economy dampened calls for RBA monetary policy intervention and bolstered demand for the Aussie driving the commodity driven currency toward an intraday high at 0.7729. Investors then looked to sell into the rally as the Aussie approached the next point of key resistance at 0.7735/40 and the unit slipped back below the 0.77 handle. Opening this morning buying 0.7694 U.S Cents attentions turn to next week’s RBA minutes as a marker for further direction. 

 

NZD / USD

Expected Range: 0.7160 – 0.7280

Reaching a high of 0.7242 when valued against its US Counterpart on Thursday the New Zealand dollar has done well to maintain its value up above the psychologically important threshold at the 72 US Cents mark over the past 48 hours. Whilst domestic flows yesterday were limited for the Kiwi the fundamentally positive tone of markets has remained comfortably in tact this week with a spread of data prints from the United States supporting the optimism. With a lower Greenback helping its cause the New Zealand dollar opens in a stronger position this morning as it currently buys 72.24 US Cents. Promising to be a busy Friday domestic retail sales figures scheduled out shortly remain the key highlight. 

 

GBP / AUD

Expected Range: 1.6150 – 1.6300

The Great British Pound edged higher through trade on Thursday moving back through 1.25 to touch intraday highs at 1.2521. Sterling found support as investors sold down USD holdings, prompting the steepest single day decline of the past fortnight. Investors looked to readjust U.S monetary policy expectations fearing Fed Chair Janet Yellen failed to deliver, with conviction, a clear path to upward rate adjustments. As Cable looked to stretch its legs markets pared gains after stronger than expected U.S building and manufacturing data stemmed the flow and Sterling opens this morning at 1.2486. 

 

USD, EUR, JPY

The U.S Dollar enjoyed mixed fortunes through trade on Thursday advancing early before relinquishing gains into the daily close. Data out of the US was generally positive. Weekly unemployment claims for the week ending February 10 printed 239K, better than the forecast print of 245K. Housing starts for the month of December rose to 1.25M, while Building Permits reached 1.29M, both beating expectations and previously upwardly revised figures. The US Dollar closed the day lower against the EUR and the JPY. The EUR/USD pair is currently trading at 1.0673. We now expect support to hold on moves approaching 1.0620 while any upward push will likely meet resistance around 1.0710. USD/JPY pair is currently trading at 113.22 with an overnight high of 114.30. A quiet session ahead in the US with no data releases scheduled.