Australian Dollar: The Aussie dollar roared higher yesterday having rallied almost 2% from its lows below 86 cents on Monday. Despite no local economic data released demand for the relatively high yielding AUD resurfaced following some better than expected data from across the Tasman. The New Zealand economic data saw Asian investors scramble to purchase both NZD and AUD against the Greenback, a theme that continued into early European trade. This morning sees the AUD open trade around its highs at 0.8730 having once again run into some resistance at 0.8750 against the Greenback with only second tier Skilled Vacancies data out of Australia for direction in early morning trade.

- We expect a range today in the AUD/USD rate of 0.8685 to 0.8765

Great Britain Pound: Investors continued to scale back short GBP positions overnight heading into tonight's release of the BoE September minutes and the U.S Federal Reserve banks interest rate decision. After having tested 1.6100 level against the Greenback earlier in the week the GBP/USD exchange rate peaked at a high near 1.6400 overnight and opens this morning at 1.6350. Investors will be dissecting tonight's minutes for further direction on the monetary policy with specific interest around any possible changes to the stimulus package. The GBP/AUD cross rate bounced back from a late Asian sell off towards 1.8600 and opens this morning back above 1.8700 at 1.8715 with more volatility in the cross likely over the next 24 to 48 hours.

- We expect a range today in the GBP/AUD rate of 1.8650 to 1.8780

New Zealand Dollar: Yesterday Second Quarter N.Z Current Account Data caught the market by surprise with the previous quarter's headline deficit turning into a surplus of 124 million NZD, outside all expectations. In seasonally adjusted terms the result was a 612 million NZD deficit for the June Quarter, 1.5 billion less than the 2.12 billion during the March quarter and much smaller than economist forecasts for a deficit of around 1.3 billion. The Kiwi immediately rallied following the release jumping from 0.7050 to an eventual overnight high near 0.7250. This morning sees the NZD open at 0.7185 ahead of the much anticipated Q2 GDP data with analysts now expecting a positive number after yesterday's information.

- We expect a range today in the NZD/USD rate of 0.7150 to 0.7250

Majors: There was little movement amongst the major currencies overnight with both the Euro and Yen holding steady against the Greenback. U.S economic data released showed continued improvement in House Prices which rose 0.3% in July whilst the Federal Reserve Bank of Richmond reported the fifth consecutive expansion in manufacturing activity in the region. Despite the relatively upbeat information the number fell short of economist forecasts however this had little impact on currencies as the U.S dollar traded sideways between 91.00 and 91.30 against the Japanese Yen around 1.4800 Euro ahead of the much anticipated FOMC announcement this evening. In other news Canadian Retail Sales figures dissapointed the market coming in at -0.6% for the month of July against expectations of a 0.5% increase causing a brief spike in USD/CAD from 1.0660 to 1.0730.

Data Releases:

  • AUD: DEWR Sep Skilled Vacancies
  • NZD: Q2 GDP
  • USD: FOMC Rate Decision
  • GBP: BoE Minutes
  • EUR: Sep PMI & Jul Industrial New orders
  • JPY: No Data Expected
  • CAD: No Data Expected

Note: The above exchange rates are based on interbank rates. If you are considering a transfer then please login, register or call us for a live dealing rate.

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