Daily Forex Forecast 06/22/2011
Australian Dollar:
The Australian Dollar drifted lower throughout the Asian Session yesterday against a broadly stronger Greenback. Following a positive close on Friday the Aussie Dollar traded as low as 1.0495 during the afternoon as losses in Asian Equities and softer commodities contributed to the currency's weakness.
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While the AUD does appear susceptible to some near-term weakness as European Sovereign Debt concerns continue to plague riskier-currencies, the Australian Dollar rebounded nicely overnight trading as high as 1.0617 as the Currency opens slightly lower against its US Counterpart this morning at a rate of 1.0580. Meanwhile investors will eagerly await the release of the RBA''s minutes from their most recent meeting this morning, to further gauge a time-frame for which the Central Bank will look to raise the benchmark cash-rate.
We expect a range today of 1.05130 -1.0680
New Zealand Dollar:
New Zealand's Dollar weakened yesterday despite a report showing Manufacturing Sales rose 1.9 percent (seasonally adjusted) for the March 2011 quarter. With such statistics offering further reason to remain positive about the nation's economic outlook the recent string of strong data suggest a relatively resilient economy. Despite the strong local data the Kiwi was sold during intra-day trade to reach an eventual low of 80.44 US Cents as global risk aversion and softer commodities saw investors sell the New Zealand Dollar. Despite its slow start the kiwi reversed some of its earlier losses as concerns about Greece's debt levels eased. This morning we see the New Zealand Dollar open just short of the 81 US Cents level currently trading a rate of 0.8099
We expect a range today of 0.8050 - 0.8150
Great British Pound:
The Great British Pound opens 40 Basis Points higher against the Greenback this morning at a rate of 1.6201. After initially suffering at the hands of a global economy, engrossed in the apparent lack of cohesion being displayed amongst European Finance ministers in their plight to save Greece from default the Sterling reached an intraday low of 1.6108. With Public Sector Borrowing Figures due for release in the UK this evening attention should turn more the happenings of the UK economy. Meanwhile this morning sees the Sterling open higher also against the Australian Dollar at a rate of 1.5305
We expect a range today of 1.52560- 1.5460
Majors:
The EURO opens this morning relatively unchanged currently trading at a rate of 1.4307 against its US Counterpart. In what proved a choppy day of trading, the EURO was initially sold during the Asian Session reaching an intra-day low of 1.4190. As New York trade kicked off for the day however European stocks pared earlier loses with US Equities managing to climb for a third straight day. With the market gaining further assurances that a solution will be found to spare Greece from a potentially crippling default scenario, the spill over effects on global credit markets are sure to drive volatility in the near-term. In the absence of any major US Economic announcements overnight the Greenback took a slightly back seat as it opens marginally higher against the Yen this morning at a rate of 80.28.
Data releases
AUD: RBA Policy Meeting Minutes, MI Leading Index
NZD: Visitor Arrivals m/m
JPY: All industries Activity m/m
GBP: Public Sector Borrowing, CBI Industrial Order Expectations
EUR: ZEW Economic Statement
USD: Existing Home Sales
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