Greenback showing signs of strength
Daily Currency Update
The New Zealand Dollar remains relatively unchanged this morning, trading within a tight range slightly above the 0.72 level. Initially the Kiwi gained against the Greenback in overnight trading, reaching a high of 0.7238 and showing signs of post-election underperformance recovery. However, the positive headline gave way to a small sell-off and was subsequently forced lower as the RBNZ chose to keep rates on hold as widely expected. The official statement also held no demons with Acting Governor Grant Spencer reiterating the RBNZ’s continued accommodative stance. With little else on the domestic front to drive direction today, the Kiwi now turns to its counterparties GDP figures later this evening for momentum.The Great British Pound advanced overnight against its US counterpart reaching a daily high of 1.3290 on the back of upbeat services PMI which showed that activity in the sector grew in September, with the index up to 53.6 from 53.2 in August. Prime Minister Theresa May endured a luckless conference speech overnight with reports now surfacing she is losing support and could be gone by Christmas. The UK macroeconomic calendar has little to offer today with no scheduled data releases. The GBP/USD pair is currently trading at 1.3238. We now expect support to hold on moves approaching 1.3210 while any upward push will likely meet resistance around 1.3300.
The U.S. Dollar saw little movement over the past 24 hours as the markets position themselves for a heavy macroeconomic docket to end the week. There was a change in sentiment for the greenback during the Asian session as investors saw bets strengthen on Jerome Powell to become the next Fed Chair in February, a well renown dovish board member of the central bank. The U.S. Dollar Index (DXY) was down 0.18% for the day with equities flat. United States ADP Non-Farm employment figures came in slightly higher than market expectation, creating 135,000 new jobs for the month of September. The Euro remained above key support at 1.1720 and up 0.2% for the day after enjoying a brief run up to an intraday high of 1.1786. Fed Chair Janet Yellen only spoke briefly this morning with no comments on monetary policy, thus markets were limited in their movements. Investors focus their attention to upcoming unemployment claims and trade balance figures this evening out of the United States.
Key Movers
With the worlds reserve currency continuing its move to higher ground the Australian dollar has come under renewed pressure over the past 24 hours. Slumping to a low of 0.7836 during Wednesday’s session, optimism that Trumps Tax Plan will support growth and drive greater investment has spurred interest in the Greenback which again opens in a broadly stronger position this morning. Having to digest another tranche of key macro releases from the United States tonight, a speech by RBA Assist Governor Guy Debelle in London is likely to have only a limited impact. Opening lower the Australian dollar currently buys 78.50 US Cents.The New Zealand Dollar remains relatively unchanged this morning, trading within a tight range slightly above the 0.72 level. Initially the Kiwi gained against the Greenback in overnight trading, reaching a high of 0.7238 and showing signs of post-election underperformance recovery. However, the positive headline gave way to a small sell-off and was subsequently forced lower as the RBNZ chose to keep rates on hold as widely expected. The official statement also held no demons with Acting Governor Grant Spencer reiterating the RBNZ’s continued accommodative stance. With little else on the domestic front to drive direction today, the Kiwi now turns to its counterparties GDP figures later this evening for momentum.
The U.S. Dollar saw little movement over the past 24 hours as the markets position themselves for a heavy macroeconomic docket to end the week. There was a change in sentiment for the greenback during the Asian session as investors saw bets strengthen on Jerome Powell to become the next Fed Chair in February, a well renown dovish board member of the central bank. The U.S. Dollar Index (DXY) was down 0.18% for the day with equities flat. United States ADP Non-Farm employment figures came in slightly higher than market expectation, creating 135,000 new jobs for the month of September. The Euro remained above key support at 1.1720 and up 0.2% for the day after enjoying a brief run up to an intraday high of 1.1786. Fed Chair Janet Yellen only spoke briefly this morning with no comments on monetary policy, thus markets were limited in their movements. Investors focus their attention to upcoming unemployment claims and trade balance figures this evening out of the United States.
Expected Ranges
- AUD/USD: 0.7750 - 0.7950 ▼
- NZD/USD: 0.7100 - 0.7300 ▼
- GBP/AUD: 1.6700 - 1.7000 ▼