Aussie continues to strengthen against the Greenback
Monday 3 July, 2017
Daily Currency Update
Key MoversPowering to a high to of 0.7712 when valued against its US Counterpart last week, demand for the Australian dollar was spurred in the wake of comments made by several of the world’s most influential central bankers who signalled that the days of super accommodative monetary policy settings are coming to an end. Viewed by many as a co-ordinated strategy, additional spice has been added to tomorrows RBA meeting as investors wait to see whether there will be any change in rhetoric following the hawkish stance adopted in the UK, Europe and United States. With the focus clearly on domestic macro indicators early in the week the Australian dollar opens more than one US Cent above levels witnessed at the same time last week. This morning the AUD buys 76.79 US Cents.
The New Zealand Dollar continued its upward trend to end the week hitting a seven-month high of 0.7342. Opening Friday morning at 0.7296, The Kiwi was driven by a strong NZD building consent reading for the month along with bullish Chinese manufacturing data, bolstering risk on movements. NZD/USD cross this week looks to break through key resistance levels around 0.7340-0.7350 and continue its advance. Movements will be dependent on NZIER Business Confidence due to be released on Tuesday and the latest GlobalDairyTrade Auction on Wednesday. The New Zealand Dollar opens at 0.7335 against the US Dollar this morning.
Quite a busy week ahead on the International Calendar kicking off tonight with US ISM Manufacturing Index which is expected to be quite robust. US Independence Day holiday on Tuesday and the US Federal Reserve will release the minutes from its last interest rate announcement on Wednesday. Finally, on Friday all eyes will be on the all-important non-farm payrolls report. The forecast is for the US unemployment rate to remain unchanged at 4.3%. In the Eurozone on Monday will see the release of the Unemployment rate for the month of May with expectations unemployment will remain steady at 9.3%. The EUR/USD pair is currently trading at 1.1422. We now expect support to hold on moves approaching 1.1380 while any upward push will likely meet resistance around 1.1460. The British pound is also stronger against the Greenback trading at 1.3019, its highest level since mid-May.
- AUD/USD: 0.7600 - 0.7760 ▲
- NZD/USD: 0.7280 - 0.7380 ▲
- GBP/AUD: 1.6850 - 1.7000 ▼