Markets flat ahead of Trump healthcare bill

AUD / USD

Expected Range: 0.7550 – 0.7700

Despite pushing through key resistance areas this week and reaching highs of 0.7750, The Australian dollar has declined just under 1% over the past 24 hours and could see 0.7600 support taken out over the coming days. Trading in a tight range in the domestic session of 0.7655 – 0.7675, we saw an overnight low 0.7630 in overnight trading. Markets hoping for an update in monetary policy outlook by Fed Reserve Chair Janet Yellen were left disappointed in her speech as investors look to further rhetoric by FOMC members heading into the weekend. A quiet day on the local docket, the Australian dollar opens at 0.7625.

NZD / USD

Expected Range: 0.7000 – 0.7050

Remaining firmly in the neutral camp the RBNZ’s decision in keeping underlying policy settings unchanged had a muted impact on the New Zealand dollar yesterday. Falling well short of spurring any significant degree of interest investors have opted to play a somewhat secondary role this week as witnessed by the unusually tight trading ranges across the NZD/USD pair. Opening this morning 0.1 percent lower than Monday’s starting point the upcoming vote on the US healthcare bill is being touted as the next major hurdle for the world’s reserve currency hence having broader implications for New Zealand’s domestic unit. Currently swapping hands a rate of 0.7025 when valued against its US Counterpart, today’s session is once again shaping up as a relatively tame one. 

GBP / AUD

Expected Range: 1.6360 – 1.6480

Breaking through resistance at the 1.2500 barrier when valued against its US Counterpart yesterday, the Great British Pound has attracted renewed buying interest over the past 24 hours. Buoyed by a retail sales read which showed the quantity of purchases rose by 1.7 percent last month when compared to January’s result, signs of buying strength across the household sector were well received by the broader market. Whilst Greenback bulls were kept comfortably in check following news that House Republicans had postponed a vote on an important health-care bill, near-term USD trajectory remains clouded as questions remain over Trumps ability to push pro-growth policies through Congress. Topping out a high of 1.2531 the Sterling opens stronger versus the Greenback (1.2522), Aussie (1.6415) and the Kiwi (1.7816).

USD, EUR, JPY

The US Dollar index was steady after a week of declines, seeing no change at 99.75 in the current risk off environment. Most currency pairs have traded in a tight range as equity and currency markets await Trumps health care bill decision in congress. United States unemployment claims of 258,000 were slightly above expectations climbing to a seven week high. The Euro traded in a tight thirty pip range against the Greenback 1.0770-1.0800, with the USD/JPY continued downside momentum seeing an intraday low of 110.60. Markets will take its cues from a number of key FOMC officials speaking over the next 24 hours.