Australian Dollar: The Australian Dollar opens marginally higher on Monday at 0.8675. The Aussie hit a high of 0.8713 during European trade on Friday night but moved lower after weak U.S. economic data raised concerns over the strength of the global recovery. A fall in U.S. durable goods orders of 2.4 per cent for August had economists revising third-quarter growth projections and sent Wall Street lower for a third straight session. Commodities also fell with gold back under US$1,000 and oil down to a two-month low of US66.02/barrel. Currencies such as the Australian and New Zealand Dollars have appreciated recently on the back of strong U.S. economic data and the recovery story.

- We expect a range today in the AUD/USD rate of 0.8620 to 0.8710

Great Britain Pound: Pound Sterling opens on Monday at a twelve-week low against its U.S. counterpart (1.5967) as speculation continued that the Bank of England favours a weaker currency to help revive the economy. Despite weak U.S. economic data, the Pound was sold down to an overnight low of 1.5914. Bank of England Governor Mervyn King said last week that the pound's weakness was helpful. Meanwhile, the pound opens sharply weaker against both the Australian Dollar (1.8400) and the New Zealand Dollar (2.2240).

- We expect a range today in the GBP/AUD rate of 1.8250 to 1.8560

New Zealand Dollar: The New Zealand Dollar has managed to open higher on Monday at 0.7175 despite posting a worse-than-expected trade deficit last Friday. The kiwi hit an intraday low of 0.7104 after the August trade deficit came in at NZ$725 million as the value of both imports and exports fell by more than 20 per cent compared to a year earlier. The currency recaptured the losses fairly quickly and hit an overnight high of 0.7213 during the European trading session. However, weak U.S. economic data knocked the kiwi back down to 0.7150 as markets raised concerns about the strength of the global recovery.

- We expect a range today in the NZD/USD rate of 0.7120 to 0.7210

Majors: The release of weaker-than-expected U.S. economic data on Friday night has seen the Greenback fall against the Japanese Yen (89.50). Durable goods orders dropped 2.4 per cent in August whilst sales of new homes climbed just 0.7 per cent. The data had economists revising U.S. third-quarter growth projections and currency markets buying the Yen and Euros. After a volatile session, the Euro opens on Monday at 1.4690. Meanwhile, the Canadian Dollar has continued its recent decline and opens at 1.0904 after the price of crude oil fell to US66.02 per barrel. Oil has fallen 8.5 per cent in the last week and is at a two-month low.

Data Releases:

  • AUD: No data today
  • CAD: No data today
  • EUR: German CPI, Sept
  • GBP: No data today
  • JPY: No data today
  • NZD: No data today
  • USD: Chicago Fed Activity Index, Aug: Dallas Fed Manufacturing Index, Sept

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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