AUD/USD 0.9910 – 1.0000
NZD/USD 0.8220 – 0.8280
GBP/AUD 1.5330 – 1.5390
Australian Dollar fundamental analysis: The Australian dollar has consolidated its recent losses in the early parts of this week having spent much of the past 24 hours below parity when valued against its US Counterpart. Trading between a range of 0.9939 – 1.0014 disappointing Industrial Production figures released from China yesterday afternoon have done little to silence investors who continue to argue that China's economy is slowing and that perhaps Australia's economy will not receive the added benefits as a result. In light of a generally flat session as New York traders entered the frame the Australian dollar opens close to its 24 hour low at a rate of 0.9954. Looking ahead today the annual budget release expected from Treasury this afternoon is set to hog headlines in an uneventful session.
New Zealand Dollar fundamental analysis:
New Zealand's dollar headed south for much of yesterday's session not helped by figures which showed China's production increased by 9.3 percent in April from a year earlier. Falling short of expectation, signs of weaker growth have only added to the fears that structural changes throughout the world's second largest economy will in the short-term have a negative impact on growth and ultimately the demand for New Zealand's exports. Tumbling to an overnight low of 0.8227 against its US Counterpart the New Zealand is lower this morning as it currently buys 82.51 US Cents. In a welcome relief for investors attention will once again turn to local happenings this morning given the expected release of quarter one Retail Sales figure where a positive reading is likely to bold well for the Kiwi's short-term direction.
Great British Pound fundamental analysis: It has been another day of misery for the Great British Pound which has fallen by more than half a cent when valued against the Greenback. With the US dollar continuing to strengthen following improved signs of growth across its retail sector lows of 1.5276 were briefly witnessed. Opening this morning only marginally above these levels at a rate of 1.5291 the broader move lower can be contributed to a significantly stronger US dollar. Whilst investors continue to speculate on the timing of when the US Federal Reserve will wind back its quantitative easing program the performance of the Sterling has been a lot more impressive when valued against the Aussie (1.5360) and the Kiwi (1.8528) with both crosses opening stronger
Majors currency fundamental analysis: Having climbed to record highs last week and following three weeks of consecutive gains US Stocks fell overnight that is despite the announcement that Retail Sales unexpectedly rose in April. Highlighting that market's may be a little stretched up at their current level, it will take some type of clear cut positive catalyst in order to trigger a further advance. Surprising the majority of investors overnight retail sales in the world's largest economy increased by 0.1 percent in April a very positive result considering the median forecast called for a 0.3 percent drop. In an otherwise quiet session currency movements were relatively muted with the gains witnessed late last week across the US dollar being maintained. Meanwhile in Europe the shared unit is weaker this morning by around 0.2 percent as it currently swaps hands at a rate of 1.2973. With pressure intensifying on European Policy Makers to consider new initiatives to revive their ailing economy watch this space for any signals that would see austerity measures scaled back and more growth friendly policies adopted. Meanwhile this morning the USD/JPY is generally unchanged at 101.748.
Source: ozforex
Data releases
AUD: No data today
NZD: Retail Sales q/q
JPY: Tertiary Industry Activity m/m
GBP: CB Leading Index
EUR: ECONFIN Meetings
USD: Import Prices m/m
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