AUD/USD 1.0440 – 1.0510
NZD/USD 0.8210 – 0.8270
GBP/AUD 1.5340 – 1.5400
Australian Dollar forex trading fundamental analysis:
It was a bumpy ride for the domestic unit yesterday after the Reserve Bank of Australia cut the official benchmark rate by 0.25% to 3.00%. In a move widely expected by financial markets such cuts mark the seventh time the RBA has made a downward adjustment over the past year. With interest rates now sitting at their lowest level since September 2009, this should see an end to the current easing cycle. Despite yesterday's move the Australian dollar held up relatively well bouncing from earlier lows of 1.0408 to reach a high of 1.0483 against its US Counterpart. Keeping in mind much of the reduced cash-rate had already been priced in at current levels in his statement Governor Stevens said the local dollar remains "higher than might have been expected". Meanwhile this morning with GDP figures due for release shortly the Aussie is currently swapping hands at a rate of 1.0475
New Zealand Dollar forex trading fundamental analysis:
The New Zealand dollar was in strong demand yesterday well buoyed by global risk sentiment which continued to favour the higher yielding asset. Despite global stocks which swung between gains and losses overnight the Greenback has remained out of favour with investors as US President Obama maintained his ground on raising taxes for higher income earners. Touching highs of 0.8259 against its US Counterpart some solid support has now been found around the 82 US Cents level. On the outlook this week the RBNZ rate decision on Thursday remains the domestic focus ahead of several key Central Bank meetings elsewhere. Meanwhile this morning the New Zealand dollar opens comfortably in positive territory currently buying 82.40 US Cents.
Great British Pound forex trading fundamental analysis:
In a survey released overnight British construction activity shrank last month as confidence about the year ahead diminished to its lowest level in 12 months. Suggesting still that further declines in construction output remain ahead such figures highlight the smaller workloads as a result of UK's double dip recession. Touching highs of 1.6130 against its US Counterpart the Great British Pound has remained in solid form over the past 24 hours despite ongoing political squabbles in the US and the disappointing construction number. Opening this morning around 15 basis points stronger the Sterling currently sits at a rate of 1.6105. Meanwhile on the cross rates the Sterling opens weaker against both the Aussie 1.5372 and the Kiwi 1.9541.
Global markets news and Majors currency fundamental analysis:
The S&P 500 slid 0.2 percent yesterday with market participants acknowledging that the clock is well and truly clicking on the US Fiscal cliff. In a statement made overnight US President Barrack Obama said that the Republican offer put forward does not go far enough in raising the revenue required to shrink the deficit by $US4 trillion over the coming decade. Maintaining his stance that higher income earners must be slugged with higher taxes, markets are set to hold their breath until a more definitive outcome is visible. Meanwhile in Europe overnight the shared unit continued its recent advance against the Greenback touching highs of 1.3105. Whilst Spanish unemployment increased by a smaller than expected amount in October a PPI reading of 0.1% also garnished little attention. In what's shaping up as a very busy end to the week interest rate decisions by the BOE, RBNZ and ECB are set to see volatilities increase as the Euro opens in a surprisingly strong position at 1.3100.
Source: ozforex
Data releases
AUD: AIG Services Index, GDP q/q
NZD: No data today
JPY: No data today
GBP: Services PMI
EUR: Retail Sales m/m, Spanish 10-y bond auction
USD: ADP Non-farm employment change, ISM Non-Manufacturing PMI, Factory Orders m/m
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