Lower commodities weigh on Aussie

Australian Dollar:

The Australian dollar has struggled when valued against its US Counterpart during the early parts of this week, failing to hold on to a significant portion of last week’s gains. Slipping below the 72 US Cents handle, lower commodity prices and a stronger US dollar have weighed on the Aussie, a trend which has become a familiar one over the past three months in which the Aussie has only broken out of its sticky 70.00 – 73.00 US Cents range on a handful of occasions. Opening weaker this morning at a rate of 0.7188 all eyes will be on RBA Governor Glenn Stevens today as he speaks about issues surrounding economic policy in Sydney.

• We expect a range today of 0.7140 – 0.7220

New Zealand Dollar:

Despite the New Zealand dollar which has been one of the weakest performing major currencies over the past 24 hours, support has managed to remain solid around the 65 US Cents mark. Whilst broader measures of risk favoured a move back into the US dollar, the Greenback traded to an eight-month high as commodity prices continued their slide off the back sluggish demand signals from China. In what’s likely to be another 24 hour window dictated by US dollar drivers, tonight’s third quarter gross domestic product release as well as a consumer confidence survey will both provide investors with a further snapshot into the health of the world’s largest economy.

• We expect a range today of 0.6480 – 0.6550

Great British Pound:

The Great British Pound has mapped out a lower trajectory during overnight trade, falling to a low of 1.5115 when valued against its US Counterpart. Despite a string of US data prints which fell short of expectation, sentiment flows have still favoured the US dollar overnight a move which sees the Sterling testing its lowest point in two weeks. With the pair seemingly destined for an ongoing struggle, tonight’s inflationary report hearing is expected to re-iterate the data-dependent nature of policy decisions moving ahead as the BOE grapples with record levels of low inflation. This morning the Sterling is lower against the greenback currently trading at a rate of 1.5113.

• We expect a range today of 2.0970 – 2.1090              

Majors:

In what’s likely to be a week dictated by poor liquidity flows in the lead up to US Thanksgiving on Friday, there does remain a handful of key US economic data prints over the coming days which will be important for the US dollars near-term value. Ahead of further reports on housing, consumer confidence and most importantly growth over the coming days the greenback has been broadly stronger over the past 24 hours, unaffected by a release which showed slowing home sales during the month of October. In the wake of commodity prices which are notably weaker this morning, the US dollars most recent surge has inflicted in even more pain on an already weak Euro with the shared unit currently swapping hands a rate of 1.0624. Steady against the Japanese Yen the world’s reserve currency opens at a rate of 122.86.

Data releases

• AUD: RBA Gov Glenn Stevens  
• NZD: No data today  
• JPY: No data today
• GBP: Inflation Report Hearings
• EUR: No data today
• USD: Prelim GDP q/q, Goods Trade Balance