AUD

The Australian dollar is slightly stronger when valued against the Greenback for a third consecutive day on the back of improvement in risk appetite and a soft US inflation report.

On the release front yesterday NAB Business Confidence declined in February to its lowest in three years, printing 2 vs. the previous 4. Business Conditions declined to 4 after printing 7 in January. Also, Home Loans declined by 2.6% while the Investment Lending for Homes printed -4.1% in the same month. Looking ahead today and we will see Westpac Consumer Sentiment release at 10.30am AEDT.

From a technical perspective, the AUD/USD pair is currently trading at 0.7080. We continue to expect support to hold on moves approaching 0.7030 while now any upward push will likely meet resistance around 0.7100.

 

AUD / NZD

Expected Range: 1.0250 – 1.0350

The Kiwi was once again the best performing currency on Tuesday as the Greenback and Sterling were both sold off. NZD/USD continued its gains to 0.6873 with the AUD/NZD cross extending its recent losses to touch 1.0311, representing its lowest level since September 2016. The Kiwi strength can be attributed to USD and GBP weakness accompanied by firmer risk sentiment on the day.

Looking ahead to today’s session, we have food price data out of the domestic economy at 10.45am NZ time before attention turns offshore to Australian consumer confidence for March which is due at 12.30pm NZ time. We also have industrial production data for January due out of the Eurozone and US durable goods orders data due out of the world’s largest economy.

We could see NZD/USD test 0.6900 today if USD weakness continues and risk sentiment remains favorable however we do see first lines of resistance at the 0.6880 region. On the downside the pair looks relatively well protected at the key psychological handle of 0.6800.

 

GBP / AUD

Expected Range: 1.8200 – 1.8700

The Pound rose sharply on Tuesday as lawmakers prepared to vote on a divorce deal after Prime Minister Theresa May won last-minute assurances from the European Union. The UK Parliament overnight rejected Prime Minister Theresa May deal by 391-242 votes, giving the Pound a modest boost, as it opens doors for an extension. The Pound advanced above 1.3100 after the vote.

If lawmakers reject a ‘no deal’ exit on Wednesday, another vote would then be held on Thursday on whether Britain should request from the EU a limited extension of the March 29 Brexit date.

From a technical perspective, the GBP/USD pair is currently trading at 1.3072. We continue to expect support to hold on moves approaching 1.3050 while now any upward push will likely meet resistance around 1.3120.

 

AUD / USD

Expected Range: 0.7020 – 0.7120

The US Dollar Index (DXY) turned on its heels overnight and retreated from two-year highs as softer than expected inflation data for the world’s biggest economy put pressure on the Greenback. Opening at 97.20 on Tuesday morning, the DXY which measures a basket of currencies against the US dollar saw an intraday low of 96.86 as the release of core inflation figures (0.1%) for the month of February missed expectations of 0.2%, and at an annualised pace of 2.1%.

It is likely that the latest figure will be enough to put the Federal Reserve firmly on path for its change to a more neutral bias for interest rate setting as Inflation is expected to remain on trend at 2%.

The US dollar is expected to be driven today by the release of Core Durable Goods Orders and PPI figures as the DXY opens this morning at 97.00.

 

AUD / EUR

Expected Range: 0.6200 – 0.6300

Markets looks to have fully priced in last week’s ECB dovish outlook as the EUR/USD advanced in overnight movements. Opening the morning at 1.1245, it was a steady upwards trajectory to test the 1.1300 handle as the weakening of the Greenback was seen as core CPI figures for the month of February slightly missed expectations.

The House of Commons ‘no deal’ Brexit vote by UK Prime Minister May was rejected this evening in the UK, suffering another large loss by 149 and another vote on Wednesday. EUR/GBP paired all losses from Monday’s price action after seeing an initial weekly low of 0.8490 before investors shifted back into the EUR and opens this morning at 0.8630.

The EUR/USD opens this morning in a more positive light at 1.1290 with a number of macroeconomic data sets due for release in the United States this evening along with EU industrial production figures.

 

AUD / CAD

Expected Range: 0.9400 – 0.9500

Tuesday’s USD weakness allowed the CAD to strengthen to near one-week highs against the Greenback. Weaker than expected inflation data out of the world’s biggest economy weighed on the USD as the Loonie also got a boost from rising oil prices. The rise in oil prices was resultant of signs of supply side tightening as a Saudi official declared the country kingdom would cut its oil exports in April.

With not much on the data docket for today, the CAD will continue to take its cues from oil price direction and possibly further fallout from the unfolding Brexit situation.

CAD traded 0.25% higher with USD/CAD touching 1.3362. We see the pair being relatively well supported at 1.3288 in the near term, however a break below this could drag the pair to levels nearer to 1.3267. On the topside we are watching 1.3413 as a key level of resistance. 

IMPORTANT: This information has been prepared for distribution over the internet and without taking into account the investment objectives, financial situation and particular needs of any particular person. Oz Forex Foreign Exchange makes no recommendations as to the merits of any financial product referred to in this website, emails or its related websites. Please read our Product Disclosure Statement and our Financial Services Guide.

Regulated in Australia by ASIC (AFS Licence number 226 484)
© 2010 Copyright Oz Forex Foreign Exchange Pty Ltd ABN 65 092-375-703
OzForex Foreign Exchange Services

Member of FOS (Financial Ombudsman Service)
Full Member of AFMA (Australian Financial Markets Association)

Analysis feed

Latest Forex Analysis

Editors’ Picks

GBP/USD extends losses to sub-1.3000 area, UK unemployment rate in focus

GBP/USD stays mildly negative just below 1.30 while heading into the London open on Tuesday. UK’s Brexit negotiator shares the same view as PM Boris Johnson, increases the risks of hard departure. UK employment statistics will be the key to clarify on the BOE’s bearish bias.

GBP/USD News

EUR/USD hovers above multi-year lows amid coronavirus fears, ahead of ZEW

EUR/USD is trading just above 1.0820, the lowest since 2017, as the coronavirus outbreak is taking its economic toll on Apple among others. The German ZEW Economic Sentiment figure is eyed.

EUR/USD News

Forex Today: Coronavirus takes a bite from the apple, Gold gains, Bitcoin bounces

The coronavirus outbreak's economic impact is growing as Apple, the iPhone maker has issued a warning that it is unable to meet its guidance due to production and issues and closed stores in China. The tech giant's announcement has been weighing on the market mood, pushing gold and the yen higher. 

Read more

Gold: Positive beyond six-week-old falling trendline

Gold prices take the bids above $1585, +0.35%, during the pre-European trading on Tuesday. The yellow metal recently broke a downward sloping trend line stretched from January 08. Early-month top on the buyer’s radar.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors

Cryptocurrencies

Signatures