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Greenback recovers on risk appetite

Daily Currency Update

Key Movers

The Australian dollar edged lower through trade on Monday in what was a lacklustre session for macroeconomic drivers. With little to spark direction the AUD succumb to profit taking as renewed demand for risk sparked an increased push for the USD. Hurricane Irma’s downgrade to a Tropical Storm dampened expectations of a significant downturn to national GDP while North Korea did not perform further nuclear test at the weekend. The Aussie moved back through 0.8050 but found support having touched intraday lows at 0.8019 and opens this morning buying 0.8030 U. S cents. With resistance now forming as support at 0.8030 attentions turn to middle level U.S employment data ahead of key labour market data Thursday. 

The New Zealand dollar trend ticked higher as risk sentiment improved in overnight markets. Opening at 0.7245 against the US Dollar, the Kiwi reached intraday highs of 0.7295, unable to sustain its rally through the 0.73 barrier. With stronger movements in the US Dollar in offshore trading, the NZD/USD cross eventually settled lower, pairing gains for the day. The New Zealand dollar opens slightly higher this morning at 0.7260 with a lack of domestic data on the horizon.

The Great British Pound struggled to mount any significant directional momentum through trade on Monday against the Greenback bouncing off lows of 1.3161 and highs of 1.3222. With little in the way of economic releases the pair remained in a relatively tight range as markets anxiously wait for the important House of Commons vote. As part of the Brexit process, MP’s will be voting on an EU repeal bill that will transfer powers across the UK, the UK government has warned of a chaotic Brexit if lawmakers do not back the bill. Tonight sees the release of UK CPI and PPI, CPI is expected to come in 2.8%, a softer than expected result could see investors sell GBP with a view that the Bank of England will put on hold any near-term rate increases. 

Expected Ranges

  • AUD/USD: 0.8000 - 0.8100 ▲
  • NZD/USD: 0.7200 - 0.7300 ▲
  • GBP/AUD: 1.6350 - 1.6450 ▲