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Quiet day ahead in Australia

Monday 10 July, 2017

Daily Currency Update

Key Movers

The Australian Dollar is weaker when valued against its US counterpart and has moved lower for a fourth straight day in a row trading as low as 0.7567. Despite local Trade data intraday showing a surplus rebound sharply in May of 2.47bn the Aussie was dragged lower with investors thoughts still on the RBA’s neutral stance. The rebound was reflected in coal exports after Cyclone Debbie has disrupted output in April. Total exports rose 8.5% in May after a 7.5% drop in April. Meanwhile, imports rose 0.7% in May after a 0.4% decline previously. The local docket remains lights today and attentions will turn to tonight’s US non-farm payrolls and unemployment with short-term volatility expected. 
The New Zealand Dollar took a turn lower overnight as selling pressure resumed in overnight trading. United States Treasury yields rose to near eight week highs putting a dampener on higher yielding currencies such as the Kiwi. Markets saw a dip in the NZD/USD cross from 0.7285 to an overnight low of 0.7245. Broader US Dollar weakness was seen during the North American session as the New Zealand dollar clawed its way back to nearly pair losses on the domestic open. With little domestic data on the docket, further leads will be taken from U.S Non-Farm Employment data this evening. The New Zealand Dollar opens this morning at 0.7275 against the U.S. Dollar.
The Euro received a major boost overnight reaching a high of 1.1424 breaking through 1.1400 level, getting an expected boost from the ECB's account of the monetary policy meeting. The hawkish commentary was certainly felt across financial markets with the Euro the best performing currency in the last 24 hours. 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. All eyes tonight will be on the upcoming US non-farm payrolls for June with expectations payrolls to increase by 178,000 with the unemployment rate to remain steady at 4.3%. The Greenback also opened weaker versus the Pound Sterling at a rate of 1.2968. 

Expected Ranges

  • AUD/USD: 0.7500 - 0.7700 ▼
  • NZD/USD: 0.7200 - 0.7380 ▼
  • GBP/AUD: 1.7050 - 1.7150 ▲