Employment numbers today's highlight

Australian Dollar:

The Australian fell for a fourth consecutive day yesterday after a report showed consumer sentiment deteriorated during the month of March. Trading to an overnight low of 0.8923 when valued against its US Counterpart, yesterday’s reading confirmed that broader sentiment had fallen by 0.7 percent its lowest level since May. Further weighing on the higher yielding asset yesterday figures also showed demand for home loans stagnated last month indicating there had been zero growth in the number of loans granted to build or buy houses.  Doing well to regain some of the ground it lost intraday the Australian dollar opens this morning trading at a familiar level of 0.8984 supported by an overnight rise in gold and commodity prices. Today Australia’s unemployment reading along with China’s Industrial production number will be critical in determining where to next for the nation’s currency.

• We expect a range today of 0.8950 – 0.9010

New Zealand Dollar

The New Zealand dollar opens this morning close to half a cent stronger when valued against its US Counterpart as it clings to levels just above the 85 US Cents mark. Having already risen by 3.5 percent so far this year the Kiwi has received a boost at time of writing this morning following an announcement from The Reserve Bank of New Zealand which has seen the official cash rate lifted from 2.5 to 2.75 percent. Whilst the decision makes New Zealand’s central bank the first across the developed world to tighten their monetary stance the rise was largely foreseen and as a result the currency’s strength will hinge greatly on the markets perception regarding the near-term direction of interest rates. Currently swapping hands at a rate of 0.8510 key industrial production figures expected from China later this afternoon will add further emphasis to an already busy session.  

• We expect a range today of 0.8470 – 0.8540

Great British Pound:

It’s been a steady 24 hour window for the Great British Pound which traded in a tight range of (1.6567 – 1.6634) when valued against its US Counterpart. Whilst UK Stocks fell for a fourth day to a one-month low news that Russia has upped the pressure on the Ukraine has only had a minimal impact on underlying currency moves. With today’s session looking equally as quiet the Sterling will take direction from broader risk flows with the pessimists presently outweighing the optimists. Unchanged this morning against both the US dollar (1.6613) and the Australian dollar (1.8501) the Sterling is lower against the New Zealand (1.9586)

• We expect a range today of 1.8460 – 1.8540

Majors:

It was a familiar story across financial markets overnight with a lack of economic data triggering lingering concerns over the state of China’s economy. Mixed with fears of an economic slowdown investors have also become jittery over credit concerns in the world’ second largest economy after the country experienced its first ever corporate bond default last week. With investors also watching closely developments in the Ukraine markets have witnessed a pretty healthy sell-off over the past 24 hours a sell off which has favoured the world’s safest havens. Leading to notable gains for the Japanese Yen the USD/JPY opens lower as a result this morning at a rate of 102.667. In other currency moves the Euro continues to test both multi-year peaks and significant resistance stronger this morning at 1.3906 when valued against its US Counterpart.  

Data releases

• AUD: MI Inflation expectations, Employment Change, Unemployment Rate
• NZD: RBNZ Gov Wheeler Speaks, Official Cash Rate, RBNZ Monetary Policy Statement, RBNZ Press Conference, RNBZ Rate Statement
• JPY: Core Machinery Orders m/m
• GBP: No data today
• EUR: ECB Monthly Bulletin
• USD: Core Retail Sales m/m, Retail Sales m/m, Unemployment Claims, Business Inventories m/m, Fed Gov Nomination Hearings