Compare to bank
AUD / USD
0.7800 – 0.7900
Investors have opted to dump the Australian dollar over the past 24 hours, seemingly losing their appetite to hold assets deemed riskier in nature. With US President Donald Trump stating overnight that his earlier warnings to North Korea may not have been tough enough, global markets have been engulfed by a broader shift which has benefitted the world' safest and deepest pockets. Whilst the AUD/USD pair still sits above key resistance, a move below 0.7830 would expose the currency to additional selling pressures. Mindful that risk sentiment will play an important part during the back end of this week, a US CPI print this evening will also be closely observed. Opening on the back foot the Australian dollar currently buys 0.7873.
Great British Pound
GBP / AUD
1.6400 – 1.6600
USD, EUR, JPY
No change to geopolitical risks overnight which sit at heightened levels this week. Both Equities and the U.S. Dollar saw downside movements after Trumps “Fire and Fury” threats. The S&P 500 down 1.45%, also following suit was the the Dow 0.93%, as the USD/JPY cross was pummelled to eight week lows in a flight to the safe haven currency. USD/JPY is expected to test 1.09 in low liquidity as a bank holiday in Japan is observed. EUR/USD once again pulled lower to test support at 1.17 and erased all gains to pull higher after a disappointing PPI reading in the United States. Investors turn their attention to the anticipated inflation reading this evening in the United States which could have an effect on current market pricing for any further interest rate hikes by the Federal Reserve this year.
New Zealand Dollar
NZD / USD
0.7200 – 0.7300
The New Zealand Dollar is weaker this morning when valued against the Greenback reaching an overnight low of 0.7251, down from the previous day' high of a 0.7368. On Thursday the Kiwi took another hit but from the central banks RBNZ Governor Graeme Wheeler, which unsurprisingly held the official cash rate at 1.75%, made it very clear during his press conference he is not happy with the current strength of the Kiwi dollar. Today there is little to no macroeconomic data scheduled. Attentions turn to the US with all eyes on July CPI figures. The NZD/USD pair is currently trading at 0.7265. We now expect support to hold on moves approaching 0.7250 while any upward push will likely meet resistance around 0.7360.
0.7800 – 0.7920
Trading as low as 0.7855 versus its US Counterpart yesterday the Australian dollar has again failed to inspire over the past 24 hours. Having only a modest reaction to CPI and PPI prints from China which both narrowly missed forecast, it has instead been the attempts of Trumps administration to calm fears of a full blown armed conflict with North Korea overnight which has been the largest contributor to underlying currency flows. Opening 0.2 percent lower this morning at a rate of 0.7885, today' session offers little to investors who will instead be forced to wait on tomorrow evenings key US CPI print.
As Geopolitical risks in North Korea remain at the forefront of investors’ minds, safe haven currencies in the Japanese Yen and Swiss Franc have both seen small favourable movements against G10 currencies. The risk off tone saw USD/JPY at one stage fall below critical support levels of 110.00, reaching its lowest level since June 15 of 1.0957, eventually recovering to 1.0990 in early morning trade. A brief rally on the greenback, despite no clear reasons during early North American trading saw the EUR/USD dipped to a weekly low of 1.1690. Losses were all but erased late in the day as the cross rebounded to a high of 117.60 on close. Markets get a fresh round of data from the North American front as Producer Price Index and unemployment claims are released overnight ahead of Inflation figures on Friday.
0.7300 – 0.7400
The New Zealand Dollar advanced this morning against the Greenback after the RBNZ held the official cash rate at 1.75 per cent. The kiwi rose higher on the back of the Reserve Bank's neutral tone in its May statement. This came as some surprise despite previously sluggish economic data and a softer inflation outlook. The RBNZ still believe the next move on interest rates will be up, but not in the foreseeable future. The Kiwi reached a high of 0.7368 against the Greenback. The NZD/USD pair is currently trading at 0.7360. We now expect support to hold on moves approaching 0.7300 while any upward push will likely meet resistance around 0.7430.
0.7880 – 0.7960
Markets have in most part lacked conviction during the early parts of this week with the only spike in volatility coming off the back comments made by US President Donald Trump who vowed to respond aggressively amid rising tensions between the two nations. Whilst flows mainly favoured the world' safest havens, the Australian dollar has remained in a relatively timid mood dropping belong below the 79 US Cents mark in overnight trade. Opening virtually unchanged this morning at a rate of 0.7913, CPI and PPI numbers from China today are likely to garnish the greatest degree of attention.
1.6350 – 1.6520
Having bounced from some critical support levels late last week, the Greenbacks near-term direction has been further clouded overnight following comments made by US President Donald Trump. Spurring volatility levels which saw US Stock Markets fall, Trump delivered a warning to North Korea, stating that any threats made to the US would be met with “fire and fury”. In the absence of any economic drivers it has instead been underlying risk settings which has set the tone this week, a move which has favoured a fall in US Treasuries and a rally for the Japanese Yen. With the next two sessions shaping up to be relatively quiet, key CPI figures from the United States on Friday promises to be a key ingredient towards near-term interest rate settings.
0.7270 – 0.7370
Another quiet day yesterday in New Zealand with the New Zealand Dollar trading within a tight 26 pip range. The Kiwi reached an overnight high of 0.7369 against the Greenback. All eyes this week will be on Thursdays RBNZ meeting with market expectations the central bank to proffer some relatively dovish direction given low inflation and concerns about the overall Kiwi Dollars strength. The interest rate is expected to remain at 1.75%. There are no data releases scheduled for today. The NZD/USD pair is currently trading at 0.7329. We now expect support to hold on moves approaching 0.7280 while any upward push will likely meet resistance around 0.7430.
0.7850 – 0.7970
Having digested a flood of economic data from both domestic and foreign sources, the Australian dollar has started the new week in a seemingly steadier position when valued against its US Counterpart. Despite what has at times been at a frantic window for the AUD, investors welcomed a tighter than usual trading band yesterday with Australian dollar drifting between a low of 0.7899 and high of 0.7948 versus the Greenback . With the 80 US cents mark still the near-term topside target, questions remain whether new support can be found at existing resistance. With Trade Balance figures from China taking centre stage today the AUD currently buys 79.10 US Cents.
1.6300 – 1.6600
Markets were quiet overnight as we saw little movements on the foreign currency front. The U.S Dollar index (DXY) which measures the greenback against six major currencies saw little change, closing up 0.04% at 93.43. USD/JPY continued its upside momentum after the strong employment result last week to hit intraday highs of 1.1090 before pulling back on dovish remarks from FOMC member Kashkari and President James Bullard, the latter stating he doesn’t expect inflation to rise anytime soon. Despite German industrial productions slipping for the month of June, EUR/USD flat lined for the majority of the day and opens this morning at 1.1795.
The New Zealand dollar is slightly weaker against the Greenback this morning. Overnight saw the Kiwi reach a high of 0.7416 before settling down around 0.7350. Yesterday on the data front the RBNZ survey of inflation expectations showed a modest dip of 2.1%, down from the previous month 2.2%, a fall in actual inflation. There are no data releases scheduled for today. The NZD/USD pair is currently trading at 0.7355. We now expect support to hold on moves approaching 0.7276 while any upward push will likely meet resistance around 0.7459.
The Australian Dollar opens weaker this morning against the Greenback on the back of strong US Jobs report on Friday. The Aussie reached a low of 0.7914 before settling around 0.7930. Last Friday on the local data front Australia's retail sales for the month of June came in at 0.3%, above market expectations 0.2%.The upbeat retail sales data overshadowed the downward revision of the GDP forecast by the RBA. A fairly quiet day expected with a bank holiday in the state of New South Wales. On the data front today will see the release of ANZ Job Advertisements at 11.30 AEST. The AUD/USD pair is currently trading at 0.7933.
Recent U.S. Dollar weakness was reversed after a strong Non-Farm payroll print for the second consecutive month. A boost in jobs of 209,000 vs 170,000, saw the U.S dollar index recover from fifteen month lows and up 0.7% for the day. Pushing the dollar higher was the announcement by Whitehouse economic advisor Gary Cohn, who suggested the corporate tax rate should be cut by at least a third to compete with developed countries. Market expectations of any further interest rate hikes after the NFP print was marginally higher with the CME Fedwatch tool pricing a 55% chance of an increase of 0.25%. EUR/USD bullish run came to an end, erasing weekly gains after a strong dataset from the United States, pulling back from a weekly high of 1.1906 to close at 1.1725. USD/JPY gains were seen during the Asian session and lifted post NFP to rally to a one week high of 111.03. Major news items are limited this week as we look towards US inflation figures on Friday.
0.7350 – 0.7450
The New Zealand Dollar fell against the Greenback on Friday on the back of upbeat US Jobs report as US jobs growth topped 200,000 for a second straight month. The New Zealand Dollar hit a low of 0.7396 during Friday' session. This week on the local data front it all kicks off on Monday with Quarterly Inflation Expectations. However all eyes will be on Thursday' RBNZ Monetary Policy Statement. All 11 economists polled by Bloomberg expect the central bank to keep rates at a record low 1.75 per cent at Thursday's review. The NZD/USD pair is currently trading at 0.7411.
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