Daily Currency Update

Having digested a flood of economic data from both domestic and foreign sources, the Australian dollar has started the new week in a seemingly steadier position when valued against its US Counterpart. Despite what has at times been at a frantic window for the AUD, investors welcomed a tighter than usual trading band yesterday with Australian dollar drifting between a low of 0.7899 and high of 0.7948 versus the Greenback . With the 80 US cents mark still the near-term topside target, questions remain whether new support can be found at existing resistance. With Trade Balance figures from China taking centre stage today the AUD currently buys 79.10 US Cents. 

The New Zealand dollar is slightly weaker against the Greenback this morning. Overnight saw the Kiwi reach a high of 0.7416 before settling down around 0.7350. Yesterday on the data front the RBNZ survey of inflation expectations showed a modest dip of 2.1%, down from the previous month 2.2%, a fall in actual inflation. There are no data releases scheduled for today. The NZD/USD pair is currently trading at 0.7355. We now expect support to hold on moves approaching 0.7276 while any upward push will likely meet resistance around 0.7459.

Markets were quiet overnight as we saw little movements on the foreign currency front. The U.S Dollar index (DXY) which measures the greenback against six major currencies saw little change, closing up 0.04% at 93.43. USD/JPY continued its upside momentum after the strong employment result last week to hit intraday highs of 1.1090 before pulling back on dovish remarks from FOMC member Kashkari and President James Bullard, the latter stating he doesn’t expect inflation to rise anytime soon. Despite German industrial productions slipping for the month of June, EUR/USD flat lined for the majority of the day and opens this morning at 1.1795.