Greece summit produces no solution

Australian Dollar:

The Australian dollar once again comfortably positioned itself up above the 77 US Cents level intraday yesterday, a session defined by only minimal price activity. Surprising many investors who were anticipating weakness following an IMF report earlier in the week which suggested that the RBA should stand ready to ease monetary settings further should our economic performance fall short of expectation, broader price channels have remained well entrenched as the Australian dollar opens steady this morning buying 77.35 US Cents. Likely to again dominant headlines and be a key determinant of broader risk sentiment, all eye’s ahead will be on Greek debt talks over the weekend with the June 30 deadline fast approaching.

• We expect a range today of 0.7680 – 0.7760

New Zealand Dollar:

The New Zealand dollar opens this morning marginally stronger when valued against its US Counterpart as it currently swaps hands at a rate of 0.6901. Doing well to maintain its value in the context of improved data flows from the United States, the ongoing standoff between Greece and its International creditors has been extended through to the weekend. Intensifying doubts over Greece’s ability to meet debt obligations on June 30, to date market participants have continued to price in a high probability of a favourable resolution, given the potentially catastrophic alternative.  Looking ahead today Trade numbers from May, due to be released at 10:45am will be the Kiwi’s first major hurdle.  

• We expect a range today of 0.6860 – 0.6940

Great British Pound:

Despite lingering unease over Greece, the Great British Pound has maintained its upward trajectory overnight briefly touching highs of 1.5750 when valued against its US Counterpart. During a session void of any domestic happenings, the focus remained very much on the lack of progress between Greece and creditors with investors still broadly complacent in the absence of a final solution. Opening stronger against the Greenback at a rate of 1.5743, other Sterling crosses also remain well supported. Versus both the Aussie (2.0344) and the Kiwi (2.2889), the Sterling is higher.

• We expect a range today of 2.0280 – 2.0400

Majors:

Underpinning expectations that the US Federal Reserve will hike interest rates at least once this year, economic indicators have continued to point higher during quarter two. In a commerce department report released overnight consumer spending rose by 0.9 percent last month, notching up its biggest advance since August 2009 whilst a separate report showed weekly unemployment claims remained well below 300 000. Consolidating its value against the world’s reserve currency the 18 nation euro has surprisingly held its ground, despite a further breakdown in negotiations overnight. With Greece and international creditors once again set to take discussions right down to wire, investors are likely to sit on their hands in the lead up.  Opening steady against the euro at a rate 1.1200 the world’s reserve currency is stronger against the Yen at 123.65

Data releases

• AUD: No data today 
• NZD: Trade Balance  
• JPY: Household Spending y/y, Tokya Core CPI y/y   
• GBP: No data today
• EUR: Private Loans y/y, EU Economic Sentiment   

USD: Revised UoM Consumer Sentiment