Daily Forex Forecast 04/11/2011
Australian Dollar: The Australian Dollar opened Friday morning finding fresh new support above the 1.05 level against its US Counterpart. With a quite day of trade anticipated the majority of direction came from offshore as the Aussie Dollar benefited again from a weaker Greenback which was sold across the board.
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As investors shed the US, Oil surged to its highest intraday price since September 2008 above the $US113 per barrel mark as a result leaving the Australian dollars upward trend still very much intact. While unchartered territory lies ahead the Australian dollar has consolidated well to open this morning at a rate of 1.0575
We expect a range today of 1.0510-1.0630
New Zealand Dollar: With no data due on Friday, the Kiwi took direction from offshore events and happenings. The Kiwi has benefitted from stronger commodity prices and a weaker Greenback, reaching 0.7833. The widening of interest rate differentials saw the Greenback heavily sold as fears the US government may shutdown as US policy makers wrangled over the US budget. The New Zealand Dollar opens today at 0.7822 versus the US Dollar.
We expect a range today of 0.7790-0.7860
Great British Pound: The Pound rose to 1.6427 against the US Dollar following reports producer prices in the UK increased 3.7% in March, far beyond estimates of 2.2%, strengthening the case for higher interest rates. Prices rose at their fastest pace in nearly 2 ½ years driven primarily by soaring energy costs as the situation in Libya keeps Libyan crude oil supplies off the market. Meanwhile the Pound opens this morning buying 1.5510 and 2.0916 against the Aussie and Kiwi respectively.
We expect a range today of 1.5478-1.5560
Majors: The European Central Bank's move to increase interest rates last week continued to drive the Euro to fresh yearly highs against the US Dollar. German trade balance had printed lower than estimates, recording an 11.8 billion surplus. Exports had risen 2.7% in February however gains were offset by a sharper 3.7% increase in imports. Despite the news, interest rate expectations drove the Euro to 1.4486 versus the US. Meanwhile, the Greenback reached a high of 85.38 against the Japanese Yen offshore after the Japanese Economy Watchers Survey reported a decline in confidence in existing and future economic conditions for the Japanese economy.
Data releases
AUD: No Data Today
NZD: REINZ House Sales (MAR)
JPY: Core Machinery Orders (FEB)
GBP: No Data Today
EUR: French Industrial Production
USD: No Data Today
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