In what was a relatively positive start for the Australian dollar on Friday the higher yielding currency traded as high as 1.0274 against its US Counterpart intraday. Finding 30 basis points of gains, a very quite economic docket as well as Asian Stocks which were trading well up from opening levels, both combined well to provide support for the Aussie. Despite its early progress, gains were quickly eroded following the release of figures which showed the US Unemployment rate had unexpectedly fell to 7.8 percent for the month of October, down from 8.1 percent in September. Touching its lowest level in more than three-months a strengthening US Currency combined with an interest rate cut locally last week have both hurt the Australian dollar as we open this morning at a rate of 1.0181.
European stocks recorded three consecutive day of gains driven by optimism central banks from both sides of the Atlantic will opt for new stimulus initiatives to underpin growth.
We expect a range today of 1.0150 – 1.0210
New Zealand Dollar
Following a local session in which the New Zealand dollar appeared initially well supported all changed when US Markets kicked into action on Friday. Falling sharply to its lowest level in over a month against its US Counterpart the Kiwi came under considerable pressure following better than expected Labour Department data from the world’s largest economy. Sparking a broad based commodities sell-off the higher yielding unit touched a bottom of 0.8152 before recovering only slightly to open weaker this morning at 0.8175. Unlike the moves of Friday evening, ranges are expected to remain relatively tight over the coming 24 hours given US markets will remain closed for the Columbus day public holiday.
We expect a range today of 0.8140 – 0.8200
Great British Pound:
The Great British Pound fell against its US Counterpart on Friday after positive job figures in the US spurred demand for the Greenback. Following a week in which the BOE left the benchmark rate unchanged at a record low 0.5 percent, a handful of currencies struggled to keep pace with the Greenback falling in comparison. Dropping to lows of 1.6122 the Sterling opens close to these levels this morning half a cent weaker at 1.6127. On the outlook this week European happenings are likely to once again dictate proceedings given ongoing Eurogroup meetings. Meanwhile this morning the Sterling has found some upside against a both the Aussie (1.5839) and the Kiwi (1.9727).
We expect a range today of 1.5800 – 1.5900
Dominating headlines and acting as the main driver behind positive equity moves on Friday the US jobless rate unexpectedly fell to 7.8 percent last month, the lowest level seen since January 2009. Whilst payrolls increased by 114 000 workers the labour market figures mark the second last release ahead of US elections which are set to commence later next month. Also significant given the emphasise placed on labour market growth by the US Federal Reserve the market will need a few more months of consistently positive leads before determining whether the most recent stimulus measures have been sufficient to spur economic activity. Increasing demand for the US Currency the Greenback opens this morning stronger against the Japanese Yen at a rate of 78.6337. Meanwhile in Europe, this week marks the beginning of high level talks amongst Policy Makers who are looking to prevent Spain from dragging the single currency into another spin. Given the debt crisis has now turned to 3 year mark the establishment of a banking union and a blueprint for rescue conditions will be high on the agenda. Clinging to the 1.30 level the Euro opens stronger this morning at a rate of 1.3032 against its US Counterpart.
ANZ Job Advertisements m/m
NZD: No Data Today
No Data Today
GBP: No Data Today
Eurogroup Meetings, German Industrial Production m/m, Sentix Investor Confidence
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