Currency markets flat in the absence of any major releases
Tuesday 11 July, 2017
Daily Currency Update
Key MoversMatching consensus forecast, annualised inflation data from China was in line with expectations when released on Monday. Supporting the Australian dollar which oscillated close the 76 US Cents mark for the majority of yesterday’s session, the currency remains closely tied to the economic strength of Australia’s most important trading partner. Offering very limited topside during the early parts of this week, an NAB Business Confidence survey today is likely to have only a muted impact on the AUD. Opening virtually unchanged at a rate of 0.7605 when valued against its US Counterpart volatility levels aren’t expected to flare-up until later in the week ahead of additional testimony from the US Federal Reserve.
The New Zealand dollar is little changed against the Greenback this morning having opened at 0.7276. Over the past week the Kiwi and the Greenback have traded within a 50 pip range. It’s a very quiet week in New Zealand with no macroeconomic data scheduled for release until Thursday. In the mean time in the absence of any notable economic data releases investors are very happy to remain on the sidelines. The NZD/USD pair is currently trading at 0.7267. We now expect support to hold on moves approaching 0.7250 while any upward push will likely meet resistance around 0.7340. The Kiwi is weaker this morning against both the Aussie dollar trading at 1.0463 (0.9557) and Pound Sterling 0.5643.
The Euro Struggled to mount any significant directional momentum through trade on Monday moving between a low of 1.1390 and a high of 1.1418 against the U.S Dollar. It was a quiet start to the trading with and with the absence of any major top tier data the currency markets have opened this morning at similar levels as yesterday. Germany had their release of trade figures which reported a surplus increase to €20.3 billion, these numbers came in on expectations as well as the Eurozone Sentix Investor Confidence survey edging up slightly to 28.4, both releases did little to the Euro Dollar. The pair is seeing immediate support at 1.1382 followed by 1.1311, on the flip side resistance around 1.1448. Another quiet day is expected, Japan sees M2 Money Stock released and Preliminary Machine Tool Orders which measures the change in the total value of new orders placed with machine tool manufacturers, both pieces are unlikely to be market moving, noting that USD/JPY has seen a 5% increase since mid-June, currency trading around the 114.00 handle.
- AUD/USD: 0.7535 - 0.7680 ▲
- NZD/USD: 0.7200 - 0.7320 ▲
- GBP/AUD: 1.6850 - 1.7050 ▼