Daily Forex Forecast 04/15/2011
Australian Dollar: Following a very flat opening yesterday the Australian dollar came to life in the afternoon as there was a renewed appetite for currencies deemed riskier.
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While the benchmark S&P/ASX200 index lost 26.8 points, figures by the Australian Bureau of Statistics reported sales of new motor vehicles in Australia increased in March by a seasonally adjusted 3.4 percent over February pushing the Aussie dollar overnight to reach a high of 1.0548 against its US Counterpart.
With a wide range of economic data expected out of Asia and the US this evening investors will be watching closely as the Aussie has struggled to establish consolidated support above the 1.05 level. We open this morning a rate of 1.0541
We expect a range today of 1.0460 - 1.0570
New Zealand Dollar: The New Zealand dollar this morning opens at a rate of 0.7930 against the Greenback after reaching a rate of 0.7950 overnight the highest level seen in 5 months.
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With global equity markets providing little direction the NZD appears to be one of the major beneficiaries from a weaker US Dollar.
Furthering the Kiwi's cause overnight was news of a successful government bond auction, with demand for the NZ 700 million worth of bonds surprising the market further boosting demand for the local unit. With the psychological 80 US Cents level last being seen in 2008, a further advancement may see this level tested.
We expect a range today of 0.7890 - 0.8010
Great British Pound: For the first time in four months consumer confidence in the UK increased. The Nationwide's Consumer Sentiment reading improved to 44 in March from 39 the month prior.
Data yesterday showed unemployment overall fell in Britain, slipping back 7.8%, even as those claiming jobless benefits increased last month.
Offshore concerns over Greece saw the Sterling temporarily slip to an overnight low of 1.6287 versus the US Dollar.
The Pound soon recovered, touching 1.6383 US, in the wake of softer US unemployment claims and producer prices. Meanwhile the Pound opens today at 1.5507 Aussie and 2.0608 Kiwi.
We expect a range today of 1.5450 - 1.0570
Majors: Leaked Chinese data helped boost risk appetite late in Asia lifting the Euro above 1.4500 against the US Dollar. Hong Kong''s Phoenix TV citing unnamed sources stated that Chinese economic data for March exceed expectations.
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Concerns Portugal and Greece may have to reschedule debt payments if an audit in June questions their ability to pay creditors weighed on the Euro offshore, falling to 1.4365 US. Softer US economic data saw the Euro tackling 1.4500 US once again.
Meanwhile the Greenback fell below 83.00 against the Japanese Yen to its lowest level this month as U.S. initial jobless claims unexpectedly rose to 412,000 while producer prices increased 0.7%, slower than expected. The US Dollar bounced back, moving toward 83.50 Yen as stocks and commodities gained.
Data releases
AUD: No Data Today
NZD: No Data Today
JPY: Industrial Production
GBP: No Data Today
EUR: Annual CPI (MAR)
USD: Empire State Manufacturing Index (MAR), Prelim UoM Consumer Sentiment, Annual CPI (MAR)
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