AUD shows signs of life after Private Sector Credit figures released

Australian Dollar:

The AUD opens stronger this morning buying 87.52US cents after private sector credit numbers printed in favour of the local currency yesterday. The Aussie rallied on the back of this release and climbed to intraday highs of 0.8768. Looking ahead to today’s economic calendar the domestic schedule is actioned packed with Chinese Manufacturing PMI and Retails Sales figures both being released throughout the day. Both information reports look to have a relatively high impact on the Australian dollar as China is Australia’s largest trading partner, and sales figures are vital in gauging consumer spending which contributes to a significant portion of economic activity.

• We expect a range today of 0.8710 – 0.8790

New Zealand Dollar:

Despite a slow start to the day the NZD ticked higher throughout trade as upbeat ANZ Business Confidence data indicated positive sentiment surrounding the local economy. With the Kiwi still reeling from the effects of the Reserve Bank statements made earlier in the week regarding currency intervention, traders welcomed the encouraging local data release which shifted the NZD/USD higher throughout the Asian session. Yesterday’s trade saw highs and lows of 0.7830 and 0.7735 respectively, and with no local announcements listed for the Kiwi, the NZD opens this morning at 0.7807.

• We expect a range today of 0.7770 – 0.7850

Great British Pound:

A disappointing outcome for the pound sterling yesterday as it declined against all majors due to a report on the Current Account. The deficit came in at £23.1 billion, with expectations leading up to the release at £16.9 billion. The GBP found itself trading well below 1.63 throughout the entirety of the day’s session, whilst also shrugging off positive GDP data. The numbers revealed a 0.9% expansion in the second quarter of the year, printing above expectations and also last quarter’s results. The UK local currency starts the day’s trade at GBP/USD1.6213, and will look to Manufacturing PMI data announcing later in the evening for any notable direction.

• We expect a range today of 1.8390 – 1.8480

Majors:

With the EUR and JPY both looking to add measures such as monetary stimulus to evade deflation, both currencies have experienced significant losses against most of their major counterparts. The EUR has reached record lows of EUR/USD1.2568 not seen for the past two years while the Bank of Japan will look to the Tankan Manufacturing Index released later in the day for any kind of stimulus the help boost the recently depreciating currency. The Greenback has continued its strong drive as the conclusion to the FED’s long term Quantitative Easing is expected to wind down next month. The prospect of interest rates being increased in the very near future is remaining prevalent in the minds of traders. With ADP Non-Farm Payroll Employment Change and ISM Manufacturing PMI being announced during today’s session, the Greenback may again continue its upward trend even further, depending on the numbers print.