Australian Dollar
The Australian dollar consistently strengthened throughout yesterday’s local session after a private report showed consumer confidence rose to a five-month high in July. Leading to a more optimistic outlook amongst households the report shows recent interest rate cuts made by the RBA are finally starting to find some traction throughout the economy. Well supported by Asian equity markets which also closed higher the Australian dollar traded as high 1.0280 against its US Counterpart late in the day, doing well to maintain such gains throughout North American releases. On the outlook today the higher yielding asset is likely to remain range bound against its US Counterpart leading up to the release of the official unemployment figures which are due out at 11:30am this morning. Meanwhile this morning the Aussie opens a full half a cent stronger, currently swapping hands at a rate of 1.0248.

We expect a range today of 1.0190 – 1.0300

New Zealand Dollar
Following a day of consolidation in which the New Zealand Dollar found some solid traction against its US Counterpart, the Kiwi fell in overnight trade unable to find support up around the critical 80 US Cents level. Falling just short, reaching a 24 hour high of 0.7998 against its US Counterpart, minutes released from the US Federal Reserve’s June meeting sapped the life out the currency highly linked to growth, as investors were left disappointed with the Central Banks decision which fell well short on future promises of further stimulus for the world’s largest economy. Opening this morning currently buying 79.66 US Cents upside resistance is again likely to kick in around the 80 US Cents Mark with investors seemingly unwilling to take it higher given the high number or important questions out of Europe which remain unanswered.

We expect a range today of 0.7920 – 0.8000

Great British Pound:
Whilst the Sterling rallied to its highest level since November 2088 against the euro, the same picture could not be painted when comparing against the Greenback. Keeping in mind the Great British Pound is being held as a safer unit amid all of the turmoil in neighbouring Europe the Sterling has struggled against a broadly stronger Greenback which has greatly benefitted by the US Fed Reserve which disappointed investors who were expecting further stimulus promises in Minutes released from there June meeting overnight. Trading between a 24 hour range of (1.5485 – 1.5577) against its US Counterpart the Sterling opens a full cent weaker this morning at 1.5419. Meanwhile on the Cross rates the story is an equally bearish one with the Sterling trading weaker against both the Aussie (1.5116) and the Kiwi (1.9446)

We expect a range today of 1.5080 – 1.5160

Majors:
Whilst global stocks rallied late to recover from earlier losses minutes from the US Federal Reserve’s June Meeting dominated wires overnight as investor’s hopes of further stimulus were essentially dashed. As markets digested the news, the minutes come at a time where concerns over the US economy continue to grow especially given a broadly weaker labour market which is hanging of the world’s largest economy. With the Fed unwilling to commit one or the other the Dollar Index (the value of the US Dollar relative to the majority of its most significant trading partners) rallied to its highest level in over two years. Meanwhile making headlines across Europe Spanish Prime Minister Mariano Rajoy rolled made announcements to roll back social-welfare protections and raise taxes in an attempt clinch much needed aid, all whilst anti-austerity protested marched the capital. Whilst all this was going on the Euro continued to its downward spiral clinging to levels above the 1.22 mark against its US Counterpart. With further turmoil expected out of Spain and Italy the road ahead is likely to remain a bumpy one for the shared currency as we open lower this morning at a rate of 1.2236 against its US Counterpart.

Data releases

AUD:
RBA Deputy Gov Lowe Speaks, MI Inflation expectations, Unemployment rate

NZD: Business NZ Manufacturing Index, FPI m/m

JPY:
Monetary Policy Statement, Overnight Call Rate

GBP: 10-yr Bond Auction

EUR:
ECB Monthly Bulletin, Industrial Production m/m, ECB President Draghi Speaks

USD:
Unemployment Claims, Import Prices m/m, Federal Budget Balance