Australian Dollar looks overseas for direction

Australian Dollar:

The Australian Dollar starts the week virtually unchanged as a lack of local economic announcements on Friday saw the AUD/USD remain range bound for the entirety of the trade session. The Aussie kept within a tight trading range as lows of AUD/USD 0.6978 were countered by highs of 0.7042. With yet again another clear economic docket on the horizon the local currency is expected to generally trade sideways throughout the day, and in upcoming overnight markets will look to the US for any direction. The AUD/USD commences trade this morning at 0.7028.

• We expect a range today of AUD/USD 0.6990 – 0.7070

New Zealand Dollar:

After concluding the week with a relatively lacklustre trade session on Friday, the Kiwi opens only a shade higher today against most its major counterparts. The local currency ticked higher throughout trade reaching overnight highs of NZD/USD0.6390, however dropped off slightly just before market open today to start trade valued at 63.60 US cents. With New Zealand economic data not being released until Wednesday this week, investor attention will be focused on the array of US data scheduled over the next few days to provide any NZD price driving action.  

Great British Pound:

The Cable opens weaker this morning after steadily trending downwards throughout Friday’s trade session. With no local economic announcements to end the week the Pound Sterling was mostly affected by positive US GDP figures released for last quarter that surpassed expectation, placing downward pressure on the GBP/USD currency pair. Today traders will be awaiting MPC member Cunliffe’s speech from a financial regulation conference in Paris. The importance of this particular public address lies in the fact that MPC members vote on where to set interest rates, therefore traders may look for clues in their public engagements for future monetary policy direction. 

• We expect a range today of GBP/AUD 2.1590 – 2.1670

Majors:

With negative Euro economic news released on Friday combined with upbeat US data announced highlighting a positive picture for the US economy, the EUR/USD opens much lower this morning at 1.1185. M3 money supply data out of the Eurozone which shows the change in total quantity of domestic currency in circulation reported a significant drop in August, and local new issued loans numbers for the same month also came back under forecast. Overseas the US reported an increase in GDP to 3.9% growth for the last quester, which also surpassed expectations for 3.7%. Investor attention today will be focused on several FOMC member speeches later tonight, as well as US spending and income data scheduled for release.

Data releases:

• GBP: MPC Member Cunliffe Speaks
• USD: FOMC Member Tarullo Speaks, FOMC Member Dudley Speaks, Core PCE Price Index m/m, Personal Spending m/m, Personal Income m/m, Pending Home Sales m/m, FOMC Member Evans Speaks, FOMC Williams Speaks