Aussie lower in subdued trade

Australian Dollar:

The Australian dollar began the week trading sideways struggling to move from the open of 0.7841. As Monday digressed the absence of local data along with the continued break in China left Asian trade light as investors waited on offshore print to breathe life into the market. European and US trade saw the Aussie lose ground as cautions over a Greek bailout saw risk sentiment removed. The AUD fell as low as 0.7782 before opening this morning half a cent weaker at 0.7796. Today will see another day with no local releases however a heavy array of European and US numbers should provide direction.

We expect a range today of 0.7755 – 0.7835

New Zealand Dollar:

The New Zealand dollar traded in line with its cross Tasman counterpart straining to move more than a few points against the Greenback in either direction. Credit Card Spending was the only release for the higher yielding currency however even after an upbeat print of 6.2 per cent was released the Kiwi failed to move. Overnight subdued trade continued and the NZD opens this morning marginally lower at 0.7522 against the USD. Today will see inflation expectations released in the early afternoon and overnight speeches from ECB president Draghi and US Fed Chair Yellen will provide guidance.

We expect a range today of 0.7480 – 0.7560

Great British Pound:

The British Pound began the week in positive territory against the Greenback shrugging aside poor domestic economic results. The only data release for the UK was CBI realised sales, a leading indicator in consumer spending and the numbers shocked to the downside. A print of 1 versus a forecast of 42 and a previous of 39 sent the GBP slightly lower however as trade continued the Sterling began to gain. Cable touched highs of 1.5477 and opens this morning over half a cent stronger at 1.5458. Against the higher yielding currencies the British Pound followed a similar pattern gaining heavily versus the AUD(1.9826) and the NZD(2.0551). Today there is no local data being released however US and European numbers later on will help guide the GBP.

We expect a range today of 1.9775 – 1.9865

Majors:

In a start to the week which saw mixed performance for the US dollar the Greenback managed to gain ground against the Euro taking advantage of German numbers which missed the mark. German Ifo Business climate fell short however was still at its highest level in over half a year. Existing home sales in the US soon after disappointed nonetheless economic print was light on Monday and investors were on the side of caution in response to the Greek bailout. The cautious tone saw the risk adverse US dollar gain ground opening this morning stronger at 1.1331 against the Euro. Today eyes will focus closely on ECB president Draghi and US Fed Chair Yellen which should provide direction for the week to come.

Data releases: 

AUD: No Data

NZD: Inflation Expectations q/q

JPY: SPPI y/y

GBP: No Data

EUR: German Final GDP q/q, Final CPI y/y, Final Core CPI y/y, ECB President Draghi Speaks, Belgian NBB Business Climate

USD: S&P/CS Composite-20 HPI y/y, Flash Services PMI, CB Consumer Confidence, Fed Chair Yellen Testifies, Richmond Manufacturing Index

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