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Investors await jobs data as AUD holds gains

BY JOEL HOLMES

The Australian dollar has comfortably maintained its solid footing over the course of the past 24 hours, hitting a high of 0.7954 when valued against its US Counterpart. With the Greenback remaining well and truly sidelined, the Australian dollar when measured against a basket of other currencies has now appreciated by a staggering  6.5 percent since the start of June, a push higher mainly driven by a soft US Dollar as well some aggressive comments with reference to future monetary policy settings from the RBA. In what could prove to be another important leaver for the AUD today, investors will be eyeing a job’s report for the month of June. Opening stronger the AUD currently buys 79.54 US Cents. 

The Kiwi has maintained its gains from yesterday, oscillating between 0.7340 and 0.7387 in overnight trading despite softer CPI numbers. Strengthened by a general decline in the USD yesterday, the Kiwi opens this morning at 0.7356. With little on the domestic economic calendar front the Kiwi is trading within a tight range ahead of policy statements from the European Central Bank and the Bank of Japan. Closer to home, the NZD fell to a two-month low against a bullish Australian dollar to currently trade at 0.9250. Strengthened by a more upbeat RBA and an uptick in commodity prices, the Aussie will be tested with labour market figures due today. 

The Great British Pound struggled to mount any significant directional momentum through trade on Thursday against the Greenback bouncing off lows of 1.3016 and highs of 1.3052. Tuesday CPI data didn’t lend any support and Bank of England’s Governor Carney said that the main factor behind high inflation was a fall in the pound which has dropped quite considerably since Brexit. With markets firming believing the Bank of England may stay put for now on raising interest rates the GBP/USD may be bound short-term. On the technical front, support lies at 1.3000 followed by 1.2965 with the pair seeing resistance at 1.3070, followed by 1.3125. Looking ahead, consumer spending is expected to rise on both the month and the year with the release of UK Retails Sales. If the retail print misses the 0.4% consensus expectations the pair could see a fall back under 1.30 handle. 
 

 

In a busy session for global markets, US Stocks surged on strong earnings, treasuries finished marginally higher whilst oil advanced. Steading itself when valued against a handful of its major peers,  the US dollar has been well supported over the past 24 hours following the release of some strong building permit and housing start figures. During a day of reversing trends the Euro has come off its highest closing mark since August 2015 as investors remain wary of the ECB’s meeting which is scheduled to commence in Frankfurt this evening. Concerned by shift away from Mario Draghi’s previously hawkish stance the shared currency opens weaker this morning at a rate of 1.1521.