Rate chatter dominates quiet session

AUD / USD

Expected Range: 0.7180 - 0.7260

Having now lost ground for a fourth consecutive week when valued against its US Counterpart the Australian dollar opened yesterday in somewhat of a tame mood. Characterized by a distinct lack of movement during Monday’s session the Australian dollar drifted aimlessly between a low of 0.7194 and a high of 0.7259 as the economic calendar both domestically and abroad failed to offer any real buying opportunities. Whilst the attention of investors today is likely to turn to Glenn Stevens who is speaking in Sydney early this afternoon, despite the record low levels of inflation which now face Australia’s economy the very earliest additional rate cuts could be seen would be August given the approaching election in July. Opening in virtually an unchanged position the Australian dollar currently buys 72.22 US Cents.

NZD / USD

Expected Range: 0.6720 - 0.6820

Whilst in the most part traders have continued to favour the world’s reserve currency during the early parts of this week off the back heightening expectations over a potential US interest move in June, overall the New Zealand dollar has remained well within the confines of its most recent trading band. Floating between a tight 50 basis point range over the past 24 hours much of the same is expected today with investors having to wait until tomorrow’s trade data release for any headline market event.Supported also by Iron ore’s rally overnight, risk setting remain somewhat neutral. Unchanged versus the Greenback the New Zealand dollar opens at a rate of 0.6761.

GBP / AUD

Expected Range: 1.9980 - 20080

With the exception of the odd topside break the Great British Pound spent the majority of Monday circulating at a level close to the 1.4480 mark when valued against its US Counterpart. Struggling however in most part to account for a stronger Greenback a light economic calendar has also left the Sterling vulnerable to broader Brexit polling and the associated risk flows. Having to wait until Thursday for any fundamental support where investors await the release of Q1 GDP figures, the Great British Pound opens marginally weaker versus the US Dollar at a rate of 1.4477. In other moves the Sterling is lower versus the Aussie (2.0043) and the Kiwi (2.1406).

USD, EUR, JPY

In a session once again dictated by US Dollar moves, the world’s reserve currency whilst generally stable against a handful of its major counterparts, has tumbled by close to 1 percent when valued against the Japanese Yen. Following data which showed Japan had notched up its third trade surplus in as many months, yesterday’s moves accounted for the largest daily percentage decline in three weeks. In discussions which have proved to be Yen supportive the United States did issue fresh warnings over the weekend to Japan to stop intervening in currency markets, arguing over the disorderly influence such moves have. In the absence of any specific data flows from the world’s largest economy overnight, currency moves have been limited to those linked to Fed speculators who continue to upwardly shift their perceptions surrounding further hikes. Opening dramatically lower versus the Japanese Yen at a rate of 109.254 the Greenback is steady versus the euro at 1.1220.