It has been a slow start to the week for the Australian dollar which has once again run out of steam well short of the 1.04 mark against its US Counterpart. Having started the day at 1.0361 the local unit struggled to keep its head above water losing over the past 24 hours one third of a US Cent. With the domestic economic docket looking increasing thin the fact US markets remain closed due to Hurricane Sandy will also do little to improve the prospects of the higher yielding asset. Opening this morning at 1.0333 investors will need to wait until later in the week before things heat up given the expected release of Chinese PMI figures on Thursday ahead of US Non-farm payrolls on Friday
The Australian Dollar retreated on Friday after trading on Friday afternoon over 1.0400 as concerns over the outcome of the US presidential election and the impending fiscal cliff in early 2013
We expect a range today of 1.0300 – 1.0360
New Zealand Dollar
With investors continuing to focus on concerns surrounding global growth, or lack thereof, it comes as little surprise to see the Greenback strengthen against a handful of its major counterparties over the early parts of this week. Given the shift towards the world’s reserve currency the New Zealand Dollar has struggled with the shift in sentiment dipping half a US Cent to lows of 0.8181 overnight. Having breached support at the 82 US Cents mark, the expected havoc caused by Hurricane Sandy is also likely to have lasting implications on global financial markets with Wall Street remaining closed for at least 48 hours. On the outlook today ranges are once again likely to remain relatively tight with interim support kicking in around 0.8150. Meanwhile this morning the Kiwi buys 81.90 US Cents.
We expect a range today of 0.8160 – 0.8220
Great British Pound:
The Great British Pound has gotten off on the wrong foot this week tumbling against its US Counterpart overnight. Whilst UK Stocks fell for the first time in four days all the talk overnight surrounded the concerns of not only the 60 million people Hurricane Sandy is likely to affect but also the overall economic implications. In happenings closer to home Spanish Prime Minister Mariano Rajoy said he will seek a bailout only when it’s in his country’s best interests to do so, signalling that a full bailout request is now just a matter of timing. Reaching lows of 1.6006 against its US Counterpart the Sterling opens a full half a cent weaker this morning at 1.6031. Meanwhile on the cross rates there is very little to report as the Great British Pounds opens flat against both the Aussie (1.5513) and the Kiwi (1.9570).
We expect a range today of 1.5480 – 1.5530
The US Dollar has drifted marginally higher in overnight trade as US Stock Markets remain closed for a second day. Whilst such closures mark the first time since 1888 that the NYSE has been shut for consecutive days due to weather Hurricane Sandy has the potential to wreak havoc on an economy already struggling to get out of first gear. In economic announcements overnight personal spending figures which came in better than expected from the US failed to capture the attention of investors given many are already focusing on safely concerns as well the economic costs of Sandy. Meanwhile on the currency front signs of US dollar strength were witnessed not only against the Japanese Yen (79.808) but also the Euro which struggled to keep pace. Falling to lows of 1.2884 euro-area finance ministers are set to meet three times over the coming weeks in an attempt to fill the gap in Greece’s finances. Whilst solutions to Greece’s ballooning debt appear a while off even after 3 years of crisis talks, remarkably it still remains at the epicentre of Europe’s problems. Meanwhile this morning the Euro opens weaker currently swapping hands at 1.2901.
HIA New Home Sales m/m, RBA Deputy Gov Lowe Speaks
NZD: No Data Today
Monetary Policy Statement, Overnight Call Rate, BOJ Press Conference,
GBP: CBI Realized Sales
CB Consumer Confidence
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